Trump’s Decision to Leave the Iran Deal is Making Gas Prices Rise

The Price of Gas is Quickly Outpacing the Tiny Tax Cuts You Got

The $.40 per gallon jump in gas prices over the past three months can be credited to one person, according to U.S. Rep. Frank Pallone (D-NJ).

“Thanks Trump!” Pallone says.

Senior energy analyst: “A lot of the reason for higher prices is the president’s policy on Iran…You’re going to see prices spike.”

The ranking member of the House Energy and Commerce committee traces a line that leads not straight, but up — as in the price of gas — to Trump’s decision to pull the United States out of a plan to help monitor Iran’s nuclear weapons program.

The so-called “Iran deal” also eased previous sanctions in order to encourage Iran to be a world partner.

Pallone is not the only one to make the connection.

New sanctions on Iranian oil exports would put a dent in global supply and could cause prices to spike higher…

“A lot of the reason for higher prices is the president’s policy on Iran,” said Joe McMonigle, senior energy policy analyst at Hedgeye Risk Management last week. “You’re talking about a huge amount of oil at risk. You’re going to see prices spike.”

As the withdrawal from inspections and lifting sanctions was announced, one expert made a prediction.

It will take some time to set the regulatory scheme that would be required to re-impose sanctions, said Robert Einhorn, a former arms control official at the State Department…

The practical effect of not issuing the waivers is to put banks, businesses and purchasers of Iranian crude oil on notice “that in the next 180 days, before November, they have to either stop importing Iranian crude oil or make significant reductions, up to 20% of Iranian crude oil,” Einhorn said.

Let’s say gas prices stay right where they are, and stop rising.

During the first year of the Trump tax cut, the average American received about $1,000 more in take-home pay. That means we could buy about 25 tanks of gas before we run out of tax cut money and start going into the hole. It’s hard to boost the economy when all your extra income is going into your gas tank.

But the price at the pump will continue to increase, and since the tax cut was front-loaded, right now is the best bump we’ll ever see.

So much winning.

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