President Trump not worried Iran will hurt GOP midterm chances
President Donald Trump said he isn’t worried about the 2026 midterm elections as effects of the war in Iran threaten to hurt Republican chances.
- Costco, with cheaper gas, said it is seeing record demand for fuel.
- Restaurant chains report “weaker-than-expected” sales growth.
- An ExxonMobil executive warned of “unheard of” inventory levels.
Gasoline prices fell nationwide and, in a few states, even dropped below $4 a gallon, which one petroleum analyst said was a sign of “growing optimism surrounding a potential U.S.-Iran agreement,” but even as fuel prices dropped, there are now new concerns.
In Michigan, gasoline dropped to $4.35 a gallon on Monday, June 1, according to AAA, while crude oil prices — the primary factor in fuel costs — started edging up, which could make it harder to reach a peace deal that would reopen the Strait of Hormuz.
Crude oil prices rose after the United States and Iran each launched new strikes.
“Michigan drivers are getting some relief at the pump,” said Adrienne Woodland, a spokeswoman for AAA. “While the drop is welcome as we head into the busy summer travel season, fuel prices remain volatile and could shift again quickly.”
Higher fuel prices are causing some motorists to rethink how they shop for gas and are likely affecting other spending habits as well, such as cutting back on eating out.
One oil company executive also warned about how low oil inventories are getting.
Patrick De Haan, head of petroleum analysis at GasBuddy, said average gasoline prices declined in all 50 states over the last week, and were below $4 a gallon in 15 states, “offering motorists some of the most widespread relief seen in weeks.”
De Haan said much of the decline came from growing optimism for a deal.
Renewed attacks spark uncertainty
The average price of regular unleaded gasoline in Michigan dropped on Monday by 28 cents from a week ago, according to AAA. But it was still significantly higher than before the war in the Middle East.
Throughout the state, the most expensive gas price averages were in Traverse City, $4.48 a gallon; Ann Arbor, $4.43; and Benton Harbor, $4.42; the least were in Flint, $4.15; Lansing, $4.19; and Marquette, $4.22.
A year ago, regular unleaded gasoline in Michigan was $3.08 a gallon.
Diesel prices, $5.84 a gallon in Michigan, also fell.
“However,” De Haan said, “the coast is anything but clear. Oil prices edged higher Sunday evening as uncertainty surrounding a potential deal persisted and renewed Israeli attacks added another layer of geopolitical risk.”
He added that motorists “may continue to see some short-term relief,” they also may “soon experience another upward swing as retailers run out of room to lower prices further. Overall, any setback in negotiations could quickly reverse the recent decline in fuel prices.”
In addition to the rising oil prices, there are now indications that the price of gasoline could go higher again with increased demand during the summer travel season and more Mideast conflict.
Mitigating pain at the pump
Michigan motorists are now paying about $66 for a full 15-gallon tank of gasoline, with some even telling the Free Press during the past few weeks that to mitigate the pain at the pump, they’ve stopped filling up all the way.
Instead, they said they are making more frequent stops and shopping around.
Costco — the membership-only, warehouse club retail chain that tends to sell lower-priced gas — said during its recent quarterly earnings report that it is seeing record demand for gasoline.
More: Michigan gas prices are near $5. Here’s how drivers are saving at the pump
It has been so overwhelmed, CNN reported, that tanker trucks are refilling stations multiple times a day.
On top of that, according to a Reuters report, several U.S. restaurant chains such as Wingstop and Domino’s have reported “weaker-than-expected sales growth” in the latest quarter, saying that high gas prices are leading their customers to cut back.
The report added that “analysts expect other restaurant chains also will show declining sales growth.”
And one oil company senior executive warned last week that global oil inventories are approaching record lows, which he said, potentially could cause oil prices — and then gasoline prices — to suddenly increase in two or three weeks.
ExxonMobil senior vice president Neil Chapman spoke at a conference on Thursday in New York, and, according to CNBC, cautioned that “we’re approaching unheard of inventory levels,” what he referred to as “really, really low levels.”
He added: “Once you get to that point, then you’ll see the price shoot up.”
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com
