This week’s deal between the U.S. and Iran is expected to pave the way for lower gasoline prices, but many congressional Republicans are far from declaring victory on affordability.
A memorandum of understanding is supposed to reopen the Strait of Hormuz, a global oil trade chokepoint, during more negotiations on Iran’s nuclear program and other issues.
Still, many Republicans recognize it may be months before prices at the pump return to pre-war levels. That’s something the party will have to contend with ahead of the midterm elections.
“Opening the Strait of Hormuz is good news. It’s just a matter of scale,” said Sen. Jon Husted (R-Ohio), who is facing a tough reelection fight. “It’s not a magic wand that when the Strait of Hormuz opens then immediately gas prices drop.”
The weariness among Senate Republicans, including allies of President Donald Trump, stands in contrast to the White House’s chosen message on gasoline prices. Trump has said prices will “drop like a rock” after the war ends.
The president said on social media Monday: “Ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz. They are going along the Southern ‘Highway,’ which is totally safe, secure, and pristine. There are other areas of travel, also!!!”
There are some signs the White House’s message could bear out. Average prices at the pump have dropped over 50 cents since their peak last month of $4.56 per gallon because the market has been anticipating a deal.
But analysts have warned it may take a long time for global oil trading to return to normal. The oil industry has also been sounding the alarm about dwindling inventories.
Sen. Mike Rounds (R-S.D.) said he expects gasoline prices to stay elevated for “a couple of months.” Similarly, retiring Sen. Thom Tillis (R-N.C.) said, “It’s gonna be hard to see a significant change between now and the fall.”
Senate Environment and Public Works Chair Shelley Moore Capito (R-W.Va.) said any downward trend should be emphasized to voters. “If it’s going down consistently, I think that’s a good indicator,” Capito said.
Sen. Rick Scott (R-Fla.) said Republicans should be pointing out other factors that may be influencing inflation — such as the national debt — and also emphasizing the importance of making sure Iran doesn’t get a nuclear weapon.
“The cost of living’s one of the biggest issues we have, and so I think we all want to see gas prices down, but we also don’t want to see, you know, our families destroyed by nuclear weapons,” Scott said.
Sen. Alan Armstrong (R-Okla.) — who served as CEO of the oil and gas giant Williams Cos. before his appointment to the Senate in March — said gasoline prices nationally have moved down “pretty quick” since the start of the month and the recent deal “will continue to encourage that.”
Sen. John Hoeven (R-N.D.) said the memorandum of understanding is “already having a significant impact” on crude prices. They were well under $80 a barrel on Tuesday.
Democrats, for their part, are not letting up their attacks on Republicans over affordability. Party leaders said Tuesday that they would keep arguing that Trump’s decision to attack Iran caused the gasoline price spike.
Senate Minority Leader Chuck Schumer (N.Y.) said “it’s going to take months and months” for prices to come down. And Senate Energy and Natural Resources ranking member Martin Heinrich (D-N.M.) held a roundtable with state and local officials on the subject.
“Hardworking Americans across the country are unsure how they are going to fill their tanks in many cases, and as they look over their monthly budgets around the kitchen table, they’re having to make some really tough choices about how they will make rent for groceries, keep the lights on — costs that were already rising before this conflict,” Heinrich said.
