Consumer prices surged 4.2% in May 2026, marking the highest annual inflation rate since April 2023 and the first time inflation has crossed the 4% threshold since 2023, according to the Bureau of Labor Statistics. President Donald Trump responded to the report on June 10 by telling reporters in the Oval Office, “No, I love it. The numbers were great. You know what I really love? I love the inflation.”
The sharp increase from April’s 3.8% rate represented the third consecutive month of accelerating price growth as Americans struggle with skyrocketing energy costs linked to the ongoing U.S.-Israel war in Iran, which launched with U.S. strikes on February 28.
When a reporter asked whether he was concerned about the new inflation data, Trump pivoted to a rambling claim that U.S. forces had been quietly seizing Iranian oil under cover of darkness.
A Confusing Claim About Iranian Oil
Before signing a $70 billion reconciliation bill boosting border and immigration enforcement, Trump delivered a series of confusing claims from the Oval Office about U.S. military operations against Iranian oil infrastructure.
“We took out the other night, 22 ships, late at night, with no lights, because they don’t have any radar, because we blasted the crap out of it,” Trump said, adding that the U.S. has been “taking out millions of barrels every night.” He predicted prices would “come down like a rock” once the war ends, forecasting Americans would soon see gas as cheap as the $1.85 per gallon he claimed to have spotted during a trip to Iowa in early 2026.
Energy Secretary Chris Wright, testifying before Congress the same day, said he was not aware of the U.S. taking millions of barrels out of Iran. Wright noted the military had helped some oil tankers transit the Strait of Hormuz and that traffic had risen “very meaningfully” in the past week.
Trump later told the New York Post his comments had been taken out of context, insisting he meant he loved that the inflation numbers were not higher given the wartime backdrop.
Energy Costs Drive the Surge
Energy has been the primary engine behind the inflation spike. The energy index rose 3.9% in May alone and accounted for more than 60% of the monthly all-items increase. Gas prices jumped 7% in May, following a 5.4% rise in April and a staggering 21.2% surge in March. Over the past 12 months, gasoline is up 40.5%.
Regular gasoline now averages $4.15 per gallon, according to motoring group AAA — a steep climb from $2.98 on February 26, two days before Trump launched strikes on Iran. Overall energy costs — driven primarily by gasoline — rose 23.5% over the past 12 months, while electricity bills climbed 5.9% year over year, according to the Bureau of Labor Statistics.
Iran’s effective shuttering of the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world’s oil and gas typically flows, has contributed significantly to price pressures. Economists warn it could take until 2027 before normal shipping resumes through the strait. Brent crude is currently trading around $85 a barrel, still significantly above pre-war levels.
Core inflation, which strips out volatile food and energy prices, came in at 2.9% annually — in line with economists’ forecasts but still well above the Federal Reserve’s 2% long-term target.
Republicans Brace for Midterm Backlash
The president’s comments landed like a political grenade as Republicans face an uphill fight to retain their slim majorities in both chambers of Congress in the November 2026 midterm elections. Voters have consistently ranked the economy as their top concern, and GOP lawmakers privately worry that consumer anger over rising prices could doom their chances.
An Economist/YouGov poll released recently showed 63% of Americans disapprove of Trump’s handling of the economy, while NBC News polling found just 32% approved of his handling of inflation specifically — with his approval rating hitting a second-term low.
Senate Minority Leader Chuck Schumer, Illinois Gov. JB Pritzker, Sen. Andy Kim and party strategist Jon Cooper hammered Trump’s apparent indifference. One Democratic statement read, “People can’t afford to feed their families. Your struggle is a joke to him.” Another quipped, “The ads write themselves.”
The criticism echoed Trump’s own remarks from May, when he said he doesn’t think about Americans’ financial situation — a comment Democrats have already begun weaving into attack ads.
Current inflation remains well below the 9.1% peak reached under former President Joe Biden in mid-2022, a comparison the White House has leaned on repeatedly. But rising prices increase pressure on the Federal Reserve to hike interest rates, which could further squeeze households and businesses heading into the fall campaign season.
Trump announced on Truth Social that a peace deal was scheduled to be signed, with the Strait of Hormuz set to reopen immediately upon signing. Pakistani Prime Minister Shehbaz Sharif said a deal could be reached within 24 hours, though Iranian officials expressed caution about the timeline. A ceasefire that briefly took hold in April collapsed, prompting further U.S. strikes and setting the stage for the current diplomatic push.
American consumers — and nervous Republican incumbents — may not have to wait much longer. With a potentially imminent peace deal and the Strait of Hormuz poised to reopen, oil markets have already begun pricing in relief. Brent crude fell more than 3% on deal optimism. Whether prices drop fast enough to ease the political pain before November remains the open question.
