Trump Says Oil and Gas Prices Will Drop When US Defeats Iran

President Donald Trump says that gas and oil prices will drop quickly after the United States wins its war with Iran, which has lasted more than six months.

“Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran,” Trump wrote in a Monday night post on Truth Social.

Trump added in his post: “Three Dollars a gallon, but ultimately, below Two Dollars a gallon. It will all happen quickly, and Iran will never have a Nuclear Weapon.”

Trump’s comment came as gas prices remain at $4.15 per gallon, on average, as of Tuesday morning, according to an update from the American Automobile Association. Meanwhile, the price for a gallon of diesel reached an all-time high on Monday of $5.90, and was roughly the same on Tuesday.

Oil prices increased on Tuesday. Brent crude increased by roughly 1 percent to $97 per barrel, while West Texas Intermediate increased more than 1 percent to $92 per barrel on Tuesday morning.

On Monday, a top Iranian official involved in previous negotiations with the United States warned that U.S. energy assets in the Middle East could be targeted in the near future, following a warning issued by Pentagon chief Pete Hegseth.

“It’s simple: the oil and gas production chain here is sprawling, accessible, and exposed,” Mohammad Bagher Ghalibaf, the Iranian parliament speaker, wrote in a post on X. “American oil and gas companies across these waters and facilities share that exposure.”

The speaker further warned: “Strike our assets and you get struck. We’ve already proven it. Ask the bases that are no longer viable.” He was responding to a post by Hegseth, who wrote that the U.S. military would sink Iranian oil tankers if Tehran attacked U.S. Navy vessels.

Three Iranian oil ships linked to the Islamic Revolutionary Guards Corps were destroyed by American forces in the region over the past weekend, according to U.S. Central Command.

On Sep. 6, senior Iranian security official Mohsen Rezaei said Iran would announce plans for a new restricted zone in the Gulf in the coming days, and that it would soon approve maps of a new shipping corridor through the Strait of Hormuz, a narrow waterway through which about a fifth of the world’s traded oil passed.

Throughout the war, Iran has sought to throttle ​traffic through the strait by threatening and attacking commercial vessels, while it has also sought to prevent ships from traveling on routes that Tehran does not approve.

Rezaei said the ​new restricted zone would begin from where a U.S. naval blockade of Iran starts and extend into areas of the Gulf. Any ship entering ⁠the new zone would be added to an Iranian sanctions list, he said.

“We will only commit to the Strait of Hormuz being open when [the Americans] stop the sabotage, threats, and attacks on ​Iran,” he said.

Reuters contributed to this report.