A war tax is being applied because of Trump’s war in Iran. Gas, diesel, and jet fuel have exploded in price. Higher energy prices act as a tax on consumers. If the war’s disruption is short, consumers will weather higher costs. A longer-duration conflict will cause consumers to cut back, reducing demand further. That slows growth and hits investment spending, and does it quickly. In the US, national average gas prices now exceed $4 per gallon.
“Secretary of war” Pete Hegseth addressed the public after CNN reported that he and the Trump administration had erroneously assumed that Iran would keep the Strait of Hormuz open.
Iran has mined the strait, fired on ships, choked off traffic, and caused the price of oil and other commodities to soar. It promised today to keep the straight closed.
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Hegseth’s response is that people shouldn’t worry their little heads. |
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“They are exercising sheer desperation in the straits of Hormuz,” he said. “Something we’re dealing with. We have been dealing with it and don’t need to worry about it.” |
Two weeks into a war that began at Trump’s whim, the U.S. appears uncertain about what to do next. As of March 13, 2026, U.S. gas prices have surged to a national average of $3.63 per gallon for regular unleaded. This from the $3.32 average a week earlier and a sharp jump from $3.07 a year ago.
WTI crude extends bullish breakout. Prices have surged since 26 February. Geopolitical tensions from the United States–Israel strikes on Iran are a key catalyst. Rising fears that the Strait of Hormuz could be disrupted have pushed oil higher. 25% of global seaborne oil trade moves through the Strait of Hormuz. Iraq suspended oil terminal operations after two tankers were hit by explosive-laden boats in Iraqi waters.
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