JD Vance Offers Two Words For Americans Facing High Gas Prices As Iran Peace Deal Looms
'I think that we've solved the problem'
The REAL reason gas prices are so high (the federal tax is just the beginning)
We're hearing a lot of noise right now about the federal gas tax.
Some believe President Trump already eliminated it. Others are convinced an executive order is about to slash prices at the pump.
Americans are asking why drivers in some states consistently pay dramatically more than drivers elsewhere.
The reality is more complicated.
Piece of the puzzle
Even if Congress suspended the federal gas tax tomorrow, fuel prices would remain far higher than many drivers expect. That's because the federal tax has become one of the smaller pieces of a much larger pricing puzzle.
And that's the part of the debate most headlines miss.
Sen. Josh Hawley (R-Mo.) has announced plans to introduce legislation suspending the federal gas tax, which today adds 18.4 cents per gallon to gasoline and 24.4 cents per gallon to diesel fuel. Sen. Mike Lee (R-Utah) has argued that the tax has largely outlived its original purpose, since the interstate highway system it helped fund is mostly complete.
The proposals immediately sparked headlines suggesting relief could be coming for drivers.
Even if Congress approved a suspension tomorrow, however, the savings would likely be smaller than many consumers expect. Most estimates suggest drivers might see roughly 15 cents per gallon in actual savings.
That's real money, particularly for families with long commutes and businesses that rely on transportation. But it wouldn't suddenly make fuel inexpensive again.
Because federal taxes are only part of the equation.
California scheming
The bigger story is what many states continue adding on top.
California remains the clearest example. While the national average for regular gasoline recently hovered around $4.17 per gallon, California drivers were paying nearly $6 per gallon on average, with some regions approaching $7. Diesel prices climbed even higher.
That gap isn't an accident.
California drivers face some of the highest fuel taxes and regulatory costs in the country. State excise taxes, special fuel-blend requirements, low-carbon fuel programs, cap-and-trade costs, environmental fees, and refinery regulations all contribute to higher prices.
Those costs become permanent parts of the system, and consumers pay them every time they fill up.
RELATED: Cheap Chinese cars: Trojan horse built to undermine US security?
Policy pain
That's why Rep. Kevin Kiley (I-Calif.) introduced the Gas Tax Reduction Act, which would reduce certain federal transportation funding to states imposing gasoline taxes above 50 cents per gallon.
Whether the bill advances or not, it highlights a reality many drivers already recognize: Policy choices can have a significant impact on fuel prices.
Drivers are often told that fuel prices are primarily the result of global events or market conditions. What receives far less attention is the role government policy plays in determining the final price consumers see at the pump.
Taxes, refinery capacity, fuel mandates, and transportation policy all play a role in determining what consumers ultimately pay at the pump.
Most consumers don't follow every detail of energy policy, but they understand what happens when they fill up their vehicles. Higher fuel costs ripple through nearly every part of the economy.
Higher diesel prices increase shipping costs. Grocery prices rise. Contractors, delivery companies, farmers, and small businesses all face higher operating expenses that eventually get passed on to consumers.
Road rage
The gas-tax debate is resonating because many Americans are beginning to connect fuel prices to broader policy decisions. They're asking why drivers in some states consistently pay dramatically more than drivers elsewhere. They're questioning why taxes and fees continue rising while road quality often fails to improve at the same pace.
Those are reasonable questions.
The federal gas tax was originally created to help build and maintain the interstate highway system. Today, many motorists feel they are paying more while receiving less in return. Roads remain in poor condition in many areas despite billions collected annually from drivers.
At the same time, governments are already looking for new sources of transportation revenue.
As electric vehicles and hybrids become more common, many states are experimenting with replacement taxes, including EV registration fees, mileage-based taxes, and road-usage charges. Officials understand that gasoline-tax revenue eventually declines when fewer people buy fuel.
Transportation taxes aren't disappearing. They're evolving.
Political theater
Which brings us back to the current debate.
The real issue isn't whether Congress temporarily suspends the federal gas tax and saves drivers a few cents per gallon.
The bigger question is how much of today's fuel pricing structure is driven by decades of taxes, regulations, mandates, and policy decisions layered onto the cost of energy.
That's the part many headlines overlook.
Americans don't need more political theater. They need honest conversations about energy policy, infrastructure spending, refinery capacity, and the real factors driving transportation costs.
Because drivers don't care about talking points when they're standing at the pump.
They care about affordability.
And right now, many Americans feel they're paying more every year while getting fewer answers about where all that money is going.
Oil industry warns Trump about gas price SHOCK coming soon: Report
Oil industry executives have reportedly warned the Trump administration that energy prices are likely to spike even more as reserves hurtle closer to a danger point.
Gas prices have already risen sharply as a result of the blockade by both the U.S. and Iran on the trade route through which much of the world's oil travels, the Strait of Hormuz.
'I hope they are paying attention to inventories right now. You're hitting tank bottom.'
According to a Politico report, four executives confirmed that officials of the U.S. energy industry informed the administration that backup oil reserves are being depleted quickly.
"We're at dangerously low levels already," said an industry executive who requested anonymity. "We have shared those concerns at the highest levels of government about what's coming in mid-to-late June. ... I hope they are paying attention to inventories right now. You're hitting tank bottom."
However, a White House official flatly denied the Politico report.
"Politico's anonymous sources are wrong," the official said.
The report was supported by recent public statements from ExxonMobil, Chevron, and other oil companies about depleted oil backup resources.
Gas prices have risen on average by an astounding 42.9%, according to statistics from the Automobile Association of America. A gallon of gas cost just under $3 before the war started, reached as high as $4.50, and has settled recently at $4.26.
Exxon's senior vice president, Neil Chapman, said at an investor conference that crude oil prices could hit $150 or $160 a barrel once reserves run out.
"You can debate whether that's going to hit those really low levels in two weeks or three weeks. Once you get to that point, then you'll see prices shoot up," he said.
Another oil executive commented to Politico about Chapman's statement.
"The administration has already been told that," the executive said. "Don't think that an open strait is going to mean your July 4 gasoline bill isn't going to be higher than what it is today. It's going to be."
Others expressed surprise that the oil price shock hadn't hit already.
RELATED: Gavin Newsom tries to blame gas companies for high gas prices — and gets NUKED by community note
The Trump administration points to policy changes it has made to alleviate oil prices, including a waiver to the Jones Act.
"President Trump and his energy team anticipated short-term market disruptions, communicated them openly to the American people, and implemented an aggressive plan to mitigate any impacts," reads a statement from Taylor Rogers, a White House spokesperson. "President Trump will never allow Iran to possess a nuclear weapon, and he will continue to advance America's core national security interests."
Like Blaze News? Bypass the censors, sign up for our newsletters, and get stories like this direct to your inbox. Sign up here!
The Strait of Hormuz is a warning. Alaska is the answer.
We’re learning a lesson that should be unmistakably clear as the world watches instability ripple outward from the Middle East: Geography still matters.
The war with Iran and the ever-present threat of disruptions at the Strait of Hormuz are exposing how fragile global energy supply chains have become. When choke points half a world away can rattle prices at the pump throughout the nation, it is time to rethink how and where America produces its energy.
Alaska offers our nation something rare: stability, security, and strength without choke points.
That rethink points north to Alaska.
Roughly a fifth of the world’s oil moves through the Strait of Hormuz. When tensions rise, insurance rates surge, shipping slows, and prices spike. Families feel it immediately, particularly young families already struggling with affordability. These price shocks do not stem from resource scarcity; they stem from dependence on unstable routes and hostile actors.
Alaska has no Strait of Hormuz
What Alaska has is something the rest of the nation desperately needs right now: secure access to energy, open ocean shipping lanes, and proximity to Asian markets without relying on canals, narrow passages, or adversarial regimes. From the Gulf of Alaska, resources can move freely across the Pacific without transiting choke points that can be threatened, closed, or weaponized.
This geographic reality significantly cuts travel days and costs; it embodies freedom of access. It is geography that is Alaska’s destiny — and America’s — if we act on it.
For years, Alaska has been sidelined in national energy conversations, despite holding nearly all the critical minerals the United States depends on and vast reserves of oil and natural gas. Here at home, Alaskans pay some of the highest fuel prices in the nation, in part because we lack refining capacity and sufficient infrastructure to fully use what we already have.
A failure, not a shortage
When conflicts like the Iran war inject chaos into global markets, Alaska should be part of the solution. Responsible development of Alaskan oil, gas, and minerals strengthens national security, lowers costs for American families, and reduces reliance on adversaries who do not share our values or our interests.
Alaska should be treated as a critical asset, not an afterthought. That means advancing energy projects, encouraging refining capacity, and opening pathways for responsible exports. It also means making sure the benefits of development flow first to Alaskans — through jobs, lower costs, and long-term economic stability — rather than being locked away by red tape or federal neglect.
RELATED: The Iran war is causing another shortage — and it will directly affect every American
The cost of service
The lesson of today’s uncertainty is not that America should retreat from the world, but that we should stand on firmer ground at home.
Wars are not measured by headlines, speculation, or the arguments that swirl in the middle of the conflict. They are measured at the end. If this conflict concludes with Iran defeated, its ability to threaten the world diminished, and our troops coming home safely, then Americans should unite in gratitude and pride.
Alaska understands the cost of service. We have one of the highest rates of veterans per capita in the nation. Our communities know sacrifice, duty, and resilience. If our sons and daughters in uniform succeed and return home victorious, we should celebrate their service and the removal of a dangerous foe from the world stage.
Alaska offers our nation something rare: stability, security, and strength without choke points. There is no Strait of Hormuz here, only opportunity. It is time we seize it. The time is right for Alaska and for the whole nation.
Ethanol is not the solution to higher gas prices
With current events stirring up global energy prices, corn ethanol is once again being dressed up as if it is a domestic energy source and agent of energy security.
The truth is that it takes more fossil fuel energy to make a gallon of corn ethanol than a gallon of gasoline. It is time to face this unpleasant truth and the other perverse outcomes achieved by 20 years of misguided policy.
Biofuels in general are just a way to put a green fig leaf on petroleum by rerouting it through a farm field.
In 2005 and 2007, Congress passed the Energy Policy and Energy Independence and Security Acts that together created the Renewable Fuel Standard program. RFS had three stated objectives: to improve U.S. energy security, to reduce greenhouse gas emissions, and to support rural economies and agricultural development.
Instead, RFS has increased motor fuel prices, increased food prices, put millions of carbon-sequestering acres of land into intensive cultivation, increased greenhouse gas emissions and air pollution, and increased water consumption and pollution.
The gallons of U.S. gasoline displaced by federal ethanol blending mandates are being exported to Mexico and other nations. The great success of RFS has been the hand of the government transferring wealth from motorists to big agriculture corporations.
The government wanted biofuels bad, and it got them bad. Under Corn Belt lobbying pressure, Congress waived the need for RFS to achieve actual greenhouse gas reductions for all existing corn ethanol biorefineries, plus all that could be built by the end of 2010.
The bulk of the corn ethanol produced over the past 20 years and today comes from these waivered plants. The EPA’s specious 2010 prediction that corn ethanol would achieve a 21% greenhouse gas reduction by 2022 was immediately challenged by the National Research Council for not properly counting land-use change and not realistically treating food competition and water use.
This panel of experts from the National Academy of Sciences even questioned the viability of the entire concept of reducing greenhouse gas with biofuels. The most rigorous and honest estimate by a third party in testimony before Congress used the EPA’s own methodology to show that adding corn ethanol to gasoline has increased greenhouse emissions by 28% over the pure gasoline baseline, with no trajectory to ever recover.
As for energy security, the goal was noble, but the method was irrational. Corn ethanol is critically dependent upon fossil fuels at every stage of production — tractor and truck fuel, fertilizer and pesticides, biorefinery energy and chemicals. Biofuels in general are just a way to put a green fig leaf on petroleum by rerouting it through a farm field.
RELATED: How the Union Pacific merger could revitalize America's rail industry
While corn ethanol production has plateaued at 15-16 billion gallons for the past 10 years — not coincidentally matching the federal subsidy limit — domestic crude oil production has skyrocketed due to technological innovations.
The U.S. is once again energy self-sufficient and the world’s largest producer of crude oil and natural gas. In 2024, the U.S. exported 100 billion gallons of refined petroleum. Other countries are burning U.S. gasoline in their cars and producing the same CO2 emissions as Americans would be if they were allowed to use it.
One of the great ironies is that RFS was authorized under the Clean Air Act. The EPA’s own 2010 regulatory impact analysis showed it would increase net air pollution and cause up to 245 more U.S. deaths per year. The EPA also granted corn ethanol a perpetual vapor pressure waiver for smog-causing emissions that it has denied to petroleum.
Perhaps worse, ethanol in gasoline enables the hydrocarbons to mix with water and thereby increase ground water and surface water contamination from fuel leaks to a far greater degree than the demonized MTBE it replaced.
A government program that has strayed so far from its objectives should be terminated. The federal agency in charge of protecting the nation’s environment should not be allowed to administer a program that increases air pollution and stresses on water, land, and climate. Fuel should be fuel and food should be food.
Surely Congress can find a better way to promote U.S. energy security and boost rural economies without imposing the highly regressive tax of increased fuel prices, inflicting such harm to the nation’s air and water resources, and promoting global food insecurity.
Editor’s note: This article was originally published by RealClearEnergy and made available via RealClearWire.
Are gas prices about to drop? What the UAE leaving OPEC means.
If you think this is just another oil headline, think again. This one hits your wallet directly, every time you start your car.
The United Arab Emirates, one of the most powerful players inside OPEC, is walking away from the cartel. That’s a huge change to the system that has controlled oil prices and, by extension, what Americans pay at the pump for more than half a century.
The UAE’s departure exposes long-standing tensions inside the group. Some countries have followed production limits; others have ignored them.
And for drivers already dealing with high gas prices, this matters more than anything coming out of Washington right now.
Market mover
For decades, OPEC has operated as a coordinated force, adjusting production to influence global oil prices. Less supply meant higher prices. More supply meant relief, but only when it suited the producers. It was never a true free market; it was controlled output designed to protect revenue.
Now one of the few countries that actually had the power to move markets is stepping away.
The UAE isn’t just another member. It is one of the rare producers with real spare capacity, the ability to quickly increase output and stabilize supply during disruptions. Alongside Saudi Arabia, it helped anchor OPEC’s influence. Take that away, and the cartel doesn’t just weaken; it loses control of the narrative.
So why should the average driver care?
Because this could be one of the first real signs that global oil pricing is shifting away from centralized control and back toward competition. And when competition increases, prices tend to come down.
Dire Strait?
But don’t expect that relief overnight.
Here’s the reality drivers are dealing with right now. Gas prices in the U.S. are already elevated, sitting above $4 per gallon in many areas. That’s not just about oil supply; it’s about geopolitics. Tensions tied to Iran and disruptions around the Strait of Hormuz, one of the most critical oil shipping routes in the world, are driving volatility and keeping prices high.
That’s the immediate pressure on your fuel bill, not the UAE’s decision — at least not yet.
The UAE exit is a medium-term shift. It means the country is no longer bound by OPEC production quotas. It can pump more oil if it chooses, and it has made it clear it wants to expand output significantly. More oil supply should push prices lower, but only if that supply actually reaches the market.
And that’s the catch drivers need to understand.
Volatile for a while
Oil prices don’t drop just because more production is possible. They drop when that oil is flowing freely, refined, and distributed. If geopolitical tensions continue to disrupt shipping lanes or production, the added supply won’t fully offset the pressure.
That’s why, in the short term, volatility is still the story.
So let’s answer the question every driver is asking: Will this lower gas prices? And when?
In the next one to two weeks, probably not. Prices will continue to react to global tensions more than anything else. But within two to six weeks, that’s when things could start to change. That’s typically how long it takes for shifts in crude oil prices to filter down to what you pay at the pump. If the UAE ramps up production and tensions ease even slightly, drivers could start seeing prices move down by late May into June.
We’re not talking about a sudden return to cheap gas, but a drop of 20 to 50 cents per gallon is realistic if conditions line up. For families commuting daily, running businesses, or planning summer travel, that kind of relief will help. And yes, this ties directly into the broader automotive landscape.
High fuel prices don’t just affect what you pay at the pump. They influence what people buy. When gas spikes, consumers start rethinking vehicle choices, holding off on larger SUVs, reconsidering trucks, or delaying purchases altogether. Automakers feel that shift immediately, especially as they try to balance EV investments with ongoing demand for gas-powered vehicles.
When prices ease, even slightly, it stabilizes that decision-making. It gives consumers more flexibility and helps normalize the market. That’s why this OPEC fracture isn’t just an energy story; it’s an automotive story.
RELATED: GM slams brakes on electric trucks as reality crashes the EV party
Priming the pump
Looking farther out, the bigger implication is what happens to OPEC itself.
The UAE’s departure exposes long-standing tensions inside the group. Some countries have followed production limits; others have ignored them. That imbalance has been building for years, and now it’s starting to break apart. When a cartel loses discipline, it loses its ability to control prices.
That’s good for drivers, but it comes with a trade-off.
Less coordination means more volatility. Prices could swing more sharply in response to global events. That’s not ideal for consumers or automakers trying to plan ahead, but it does reduce the ability of a centralized group to keep prices artificially elevated.
There’s also a strategic shift happening behind the scenes. The UAE wants flexibility, not restrictions. The country is investing in expanding production capacity and positioning itself to produce more oil, not less, in the years ahead. That aligns more with a competitive market than a controlled one.
For the United States, that could quietly become a win. More global supply, less cartel control, and increased competition all point toward lower energy costs over time. But again, timing is everything, and right now, geopolitical instability is still the dominant force.
So here’s the bottom line for drivers. The UAE just weakened one of the most powerful forces controlling global oil prices. That opens the door to lower gas prices and more competition. But in the short term, the same geopolitical risks that pushed prices higher are still in play.
If tensions ease and supply increases, you could see relief at the pump within weeks. If not, expect more of the same volatility that’s been hitting your wallet every time you fill up. Either way, this isn’t just another oil story. It’s a shift that will play out on American roads, in dealership showrooms, and, most importantly, at the pump.
Gas prices keep climbing — but relief may come sooner than you think
While Americans are paying a premium for gasoline, the Iranians are filling up for just 12 cents a gallon. With the Strait of Hormuz blockaded, Iran is desperately trying to use up its oil inside the country — going as far as burning it off at wellheads and hauling it over land in pickup trucks using buckets.
But this isn’t sustainable. Sooner or later, something will have to give.
To find out what happens next and what it means for American gas prices and energy security, Glenn Beck speaks with oil and gas expert Tim Stewart.
Glenn asks Stewart how long before Iran is forced to shut down oil operations.
“From what we gather, they are almost there,” says Stewart.
He explains that oil is stored in tanks, pipelines, trucks, and ships and is in “a constant moving process.” However, the current blockage means the “floating storage” is “shut down,” which “puts intense pressure” on the other storage units. Eventually, the valve on the wells has to be turned down to compensate.
“And that’s what the Iranians actually did,” says Stewart.
But this didn’t solve their problem. Iran’s main oil fields are “legacy fields,” meaning their infrastructure is outdated.
“Those fields have water issues; they have pressure issues; they have migration issues,” says Stewart.
Given that these old fields were already running at their limit before the blockade forced production to slow, Iran will have an immensely difficult time ramping them back up to full operating capacity once the current crisis ends, he explains.
“The [current slowdown] is going to have a long-term impact on their ability to ramp up to another three million barrels a day,” he tells Glenn. “We are kind of in that endgame scenario right now.”
Iran aside, Glenn wants to know how America can address her own oil woes regardless of what’s happening overseas.
Stewart explains that the United States is now the world’s biggest oil producer, but the oil we produce — “light sweet crude” — cannot be utilized because our refineries were built to process “heavy sour crude” imported from other countries. Thus for decades now, we’ve been in an oil swapping game.
But that’s beginning to change.
Stewart notes that companies are beginning to invest in refineries that process light sweet crude oil; Wall Street has finally accepted that fossil fuels are the future; OPEC is starting to crack with the recent departure of the United Arab Emirates.
However, even with the tides turning, we’re still contending with a massive 450 million barrel global shortage.
“So there's a long tale as to how and when that shortfall is made up,” says Stewart.
Glenn praises President Trump’s America First mindset in “setting us up to be the OPEC of the world,” but he expresses concern for the American people. While American oil companies are sure to make a lot of money from Trump's initiative, the people themselves are financially hurting from the high prices.
“Has anyone ever said ... ‘Hey, is there a way to give the American people a break here and maybe turn our profits down just a little bit?”’ he asks.
“It's difficult because, again with the industry being bifurcated like it is, you know, the majority of my members of the U.S. Oil and Gas Association are small independent producers. We're like farmers,” says Stewart. “It's like when you send the cows to auction, you don't set the auction price. The auction does.”
The same dynamic occurs in the oil industry.
“We prefer stable prices more than anything,” says Stewart, “and those prices need to be in that $67 to $85 a barrel range. ... It allows us to do long-term planning.”
This stability benefits the customer too, he explains.
“The Goldilocks zone is in that $70 to $90 [per barrel range], which that translates to that $2.95, $3.15 a gallon for gas, and that's where people seem to be able to to function well,” he adds.
Giving consumers immediate relief, Stewart says, is really up to the states.
“Have the states themselves look at what they're charging and adjust those fees, adjust those taxes or waive them or do a holiday or something like that,” he says. “That brings some immediate relief.”
“The problem is that relief only lasts as long as we don't get a $20 spike in crude the next day because of a tweet or because of a drone strike,” he warns.
“If things are solved, let's say in the next four weeks, and it goes back and the strait is open ... how fast does the gas price come down at the pump?” Glenn asks.
“I do think you see it this summer, particularly in the United States,” says Stewart.
Once the strait opens, America’s European and Asian allies can start getting their oil supply elsewhere instead of from the U.S., resulting in lower gas prices here.
But Glenn wants to know how low prices will be.
Stewart believes the range of $2.85 to $3.15 is plausible, and it’s “where everybody's happy.”
“You want a growing economy, which then needs energy to be able to fuel it. You don't want demand collapse where gas is cheap but nobody's working, right?” he says. “And so again, it's this Goldilocks zone we’re trying to get in.”
To hear more, watch the video above.
Want more from Glenn Beck?
To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.
Today's top stories
www.theblaze.com
thefederalist.com
www.theblaze.com
www.theblaze.com
thefederalist.com
www.theblaze.com