Energy Costs Pressure Democrats Ahead of Congress Takeover
Gasoline, diesel and heating oil prices have climbed since the U.S. attacked Iran on February 28, as Democrats prepare to take control of Congress in January.
Updated on Nov. 11, 2026 in Oil and Gas
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Energy costs have surged since the U.S. attacked Iran on February 28, with gasoline averaging $3.98 per gallon and diesel reaching $6.16 per gallon. Democrats are considering using federal spending negotiations to press the Trump administration to end the conflict with Iran.
Why it matters
The war has disrupted shipping through the Strait of Hormuz, which previously carried roughly 20% of the world's oil supply, pushing up prices for drivers, truckers and home heating customers. Proposed short-term fixes include suspending federal fuel taxes and releasing oil from the Strategic Petroleum Reserve.
Gasoline averages $3.98 per gallon, diesel $6.16 and home heating oil $6.14, while the federal gas tax accounts for just 18.4 cents per gallon. Whether a tax suspension would translate into consumer savings remains unestablished.
The players
Democrats
The party is preparing to assume control of Congress and is considering using spending negotiations as leverage over the Iran conflict.
Trump administration
The administration is the target of Democratic pressure to end the conflict with Iran, and it oversees the federal response to fuel supply concerns.
The details
Democrats are preparing to take control of Congress in January and are weighing whether to use federal spending negotiations to pressure the Trump administration to end the Iran conflict. Much of the regulation of electricity rates and home heating oil falls to state and local agencies rather than Congress.
Timeline
February 28: The U.S. attacks Iran, and energy costs begin surging.
January: Democrats take control of Congress.
Market Landscape
The Strategic Petroleum Reserve has fallen to 282 million barrels, its lowest level in 44 years, narrowing the government's buffer against supply shocks. The Strait of Hormuz disruption now tests that buffer at a time when the strait previously carried roughly 20% of global oil supply.
Drivers paying $3.98 per gallon for gasoline and households paying $6.14 per gallon for heating oil face direct cost pressure. Any federal gas tax suspension would affect the 18.4 cents per gallon tax but would not guarantee lower prices at the pump.
The takeaway
Fuel prices depend on global supply as well as domestic policy, so short-term tax or reserve measures may not fully offset disruptions at sea. Watching state utility rate decisions alongside federal action gives a clearer picture of household costs.
What happens next
Democrats take control of Congress in January, when negotiations over federal spending and the Iran conflict are expected to begin.
Further reading
For more on the forces behind pump prices, see Oil and Gas coverage.
Source note: This article includes information reported by Baton Rouge Business Report.
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