President Trump claims gas prices will ‘go down’ after Iran war
President Trump released an update on gasoline prices, predicting a significant drop following the Iran war.
- A recent poll found that 44% of Americans are driving less because of rising gas prices.
- The same poll found that 34% of Americans are changing their vacation plans because of rising fuel costs.
- As a result of rising gas prices, 42% of those surveyed are also cutting back on other household expenses.
Rising gas prices are changing the driving behavior of many Americans, according to a new poll released by ABC News, The Washington Post and Ipsos. A survey of 2,560 U.S. adults conducted between April 24 and April 28 found that 44% of respondents said they were cutting back on driving due to high gas prices.
The findings come as gas prices rose to an average of $4.55 per gallon on May 7, from $4.30 the previous week on April 30, according to AAA.
“May 6 US Gas Price Scorecard ($3.99 per gallon is no longer the most common price in the US. The top 10% of gas stations are now averaging over $6 per gallon,” Patrick de Haan, GasBuddy’s head of petroleum analysis, said in an X post.)
De Haan said in a May 4 blog post that gasoline prices are expected to continue rising in the coming weeks due to the war between the United States and Iran.
“The market is also digesting a wave of new developments, including OPEC+’s production increase in June and President Trump’s outline of a plan to free stranded ships, which could lead to some recovery in supply,” he said. “However, with so many variables at play, the outlook remains very fluid and while localized easing may emerge, broader price movements are likely to continue in the short term.”
The USA TODAY Cars team analyzed how U.S. drivers are adjusting their behavior to cope with rising gas prices.
Americans are driving less
When asked whether they thought gasoline prices would get better or worse next year, the majority (50%) of poll respondents said they thought they would get worse. When asked an additional question about the impact of gas prices, 44% said they had driven less.
According to the U.S. Department of Energy, there has historically been an inverse relationship between the number of miles Americans are willing to drive, gas prices and overall economic uncertainty. “The long-term rise[in vehicle miles traveled]has included three periods of flatness or decline in 1974, 1979, and 2008, triggered by high oil prices,” the agency said in a post on its website.
“The flatline in VMT that began in 2008 persisted long after oil prices recovered, primarily due to the economic downturn,” the agency continued. “VMT started rising again in 2012, largely because oil prices remained relatively low while the U.S. economy recovered.”
The agency said another long-term period of recent U.S. driving declines was the beginning of the 2020 coronavirus pandemic.
“The growth rate slowed from 2017 to 2020. Due to the COVID-19 pandemic, VMT in 2021, reflecting February 2020 to January 2021, was the lowest since 2002,” the Energy Department said. “VMT reached its highest level since 2021, primarily due to the trend of hybrid work schedules.”
Americans are changing their vacation plans
The survey also found that 34% of respondents said they were changing their travel or vacation plans in light of the current rise in gas prices.
The findings come after the U.S. Travel Association found the following price increases for travelers:
- Gasoline prices rose 9.2% year-on-year and 21.5% since February, putting the biggest upward pressure on the index.
- Airfares increased by 14.9% compared to March last year, continuing the increase observed since the second half of 2025.
- Out-of-home dining increased 3.8% year-over-year, consistent with multi-year trends in restaurant and hospitality pricing.
- Hotel prices rose 2.1% year-on-year, reversing the decline recorded in January and February.
- Recreation spending increased 2.0% year-over-year, a slower increase than the sharp monthly increases observed in the second half of 2025.
Americans are cutting back on household spending
According to the survey, 42% of adults said they were cutting back on household spending in light of the current rise in gas prices.
According to the U.S. Bureau of Economic Analysis, personal consumption spending increased by $195.4 billion in March 2026. But officials said $81.3 billion of the increased spending went to gas and other energy costs.
The next category with the largest increase in spending was health care, which increased by $21.3 billion.
Here’s how much U.S. spending increased in each category in March, according to the agency:
- Gasoline and other energy products: $81.3 billion
- Healthcare: $21.3 billion
- Automobiles and parts: $17.6 billion
- Financial services and insurance: $14.6 billion
- Other non-durable goods: $9.9 billion
- Food and Beverage: $6.9 billion
- Transportation services: $6.7 billion
- Other services: $6.6 billion
- Recreational equipment and vehicles: $5.5 billion
- Furniture and durable home equipment: $5 billion
- Final expenditure for nonprofits: $4.2 billion
- Food services and lodging: $3.5 billion
- Clothing and footwear: $2.9 billion
- Other durable goods: $2.7 billion
- Housing and utilities: $500 million
Americans are considering electric cars and renting them to reduce gas costs.
Almost half of the poll respondents said they were trying to cut back on spending, while 15% said they were currently considering buying an electric car.
And even if Americans aren’t ready to buy a new or used EV, they’re choosing to rent one more often. Car Rental Gateway, an online car rental platform headquartered in London with operations in the United States, reported a 16% increase in electric and hybrid vehicle rentals in March.
Additionally, Hertz spokeswoman Lauren Luster told USA TODAY that the company saw a nearly 25% increase in requests for EV reservations from rideshare drivers from February to March.
The survey results were announced at a time when sales of new electric vehicles are declining, while sales of used EVs are recovering. According to Cox Automotive, automakers sold 82,629 new electric vehicles and 42,924 used EVs in March 2026.
According to the group, new car EV sales in March decreased by 24.7% compared to March 2025, but increased by 20.2% compared to February 2026. Used EV sales increased by 27.7% compared to March 2025, and by 53.9% compared to February 2025.
Cox said Tesla sold the most EVs in March, both new and used, with the Austin, Texas-based company selling 41,055 new EVs and 15,385 used plug-in models.
Cox said the average price for a new EV in March was $54,508, while the typical used EV price was $34,653.
