US Official Discusses Energy Prices, Iran Tensions, and Potential Economic Measures

“Flows today are approaching half of the gap, and they’re rising,” Wright said at the event.

The state of the U.S. war with Iran has become increasingly blurry, as President Donald Trump earlier this week said the U.S. would conduct more military strikes against the country, then walked that idea back, then indicated a deal could be signed this weekend and most recently said Iranian negotiators were “very dishonorable people to deal with.”

The spike in oil and gasoline prices that occurred after Iran all but closed Hormuz to traffic has bedeviled the Trump administration and Republicans who hope to keep control of Congress after what is shaping up to be a midterm election dominated by voters’ concerns over the high cost of living. Inflation hit 4.2 percent in May, the Labor Department reported earlier this week, driven by higher energy prices.

The naval escorts show the administration is achieving its twin goals of controlling energy prices while also preventing Iran from obtaining a nuclear weapon, Wright said.

“We are living with higher energy prices,” he said. “People don’t think about these long-term issues.”

The administration is looking at other options, including another drawdown from the Strategic Petroleum Reserve, Wright said. A gas-tax holiday “is possible” he added, although it would require congressional action.

“There are trade-offs in all of these issues,” he said. “The overriding objective is lower costs for all Americans.”