UBS On-Air: Paul Donovan Daily Audio 'Managing expectations'

The political costs of the Gulf war are evident—US President Trump suggested removing the federal tax on gasoline. Gasoline prices (unlike diesel) feed directly into US consumer price calculations. However, even supposing Congress was in session long enough to pass the legislation, a less than 19% reduction per US gallon has to be considered against a price increase of over USD 1.25 since the war began. But sensitivity to the political cost may encourage optimism about US attitudes toward a deal with Iran.