“They better cut the retail price, the consumer price,” Trump said. “I’ll say it loud and clear. I’m not happy about it.”
But Trump’s ability to jawbone the markets may be diminishing at a critical time, three months before the midterm elections when control of Congress is hanging in the balance and his approval is sinking to new lows amid voter anger over cost of living concerns. It comes as global crude oil supplies are running low, the war threatens more energy flows, refiners are running out of spare capacity and the administration has few tools to keep gas prices low.
“Labor Day is the point where gas prices are baked into the election,” said Republican pollster Frank Luntz. “That last summer trip determines how voters evaluate their cost of living.”
And the higher gas prices come at a time when Trump repeatedly promises to escalate the war and then says it’s almost over a few hours or days later. That is starting to degrade his ability to cause price drops, a former adviser cautioned.
“His credibility has been a little bit shot,” said a former Trump adviser close to the White House, granted anonymity to avoid reprisal.
“The markets aren’t paying attention to him, they’re paying attention to what’s happening and, with respect to oil prices, it is a huge liability for the Republicans,” the adviser said.
Trump on Monday acknowledged that dynamic but expressed no urgency. He told reporters in the Oval Office that he was in no rush to end the conflict, though he acknowledged the need to fully reopen the Strait of Hormuz, through which about 20 percent of global energy supplies flowed before the war. He hinted at the midterm stakes for his party if the conflict does not end soon.
