Mashadipati: Washington Edition: Trump’s oil quandary

Welcome to Washington Edition, our now twice-daily flagship newsletter covering the intersection of politics, power, and money. I'm Nancy Cook, Bloomberg's senior national political correspondent, and each weekday I'll be coming to you with inside-the-room reporting and insights that reveal what's really happening in Washington—and how it impacts you. Jonathan Tamari, senior Washington reporter for BGOV will be leading the morning edition, and Bloomberg Intelligence senior analyst Nathan Dean will be writing Friday afternoons.

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Looking for Relief

Lower gasoline prices have been Donald Trump's calling card in his second term — one highly visible economic bright spot for voters anxious about inflation at the grocery store, high interest rates and a labor market where new jobs just aren't that plentiful.

But the war in Iran flipped that card over, as oil prices skyrocketed and the average price at the pump in the US jumped 33% since the conflict started to almost $4 a gallon.

It may only be a short-term shock, but with the war entering its fourth week, the administration is hunting for ways to bring down gasoline prices before the crucial November midterms.

I'm told Cabinet members like Energy Secretary Christopher Wright, staff at the National Economic Council and the National Energy Dominance Council as well as other White House aides are soliciting ideas from policy experts, donors and energy executives as they struggle to limit the economic damage inflicted by the war.

Today, Trump himself backed down from threats he made over the weekend to begin hitting Iran's energy infrastructure in 48 hours after allies and Gulf countries warned the president about the consequences and oil prices spiked.

The S&P 500 added about 1% and Brent crude, the global oil benchmark, closing below $100 a barrel for the first time in almost two weeks after Trump's announcement. (The president said that he noticed today's immediate price reaction.)

Among the myriad ideas floated to the administration for consideration are asking Congress to suspend the federal gas tax; releasing more oil from the Strategic Petroleum Reserve once the current release is finished and fast-tracking drilling permits, according to people familiar with the internal discussions. A White House official said while there are many options on the table, the administration at this time isn't pursuing a gas tax holiday or an additional SPR release.

One Trump ally acknowledged a lot of this was "gimmicky" but said the White House has to show it's taking action before the midterms, which inevitably will turn on the economy. With Republican control of Congress at risk, Trump has put his political team in a bit of a quagmire with ostensibly no clear strategy or timeline for ending the war.

"The only way to bring them back down on a permanent basis to where they were before the war started is to figure out how to open traffic up in the Gulf again," John Bolton, one of Trump's national security advisers from his first term, said of oil prices. "Everything else is a matter of a cent or two on the gallon of the world market price."

Amid the market and geopolitical turmoil, Trump advisers and allies are trying to project calm.

One adviser, looking at the bright side, told me the midterms are far away (well, roughly seven months), and another said it's too early to tell if Trump will suffer politically from war (despite his sinking approval ratings).

But privately, I'm told the White House is extremely concerned about the spillover effect of higher gas prices. But as one ally told me, things won't change until the markets see 100 oil tankers sailing through that Strait of Hormuz.

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Today's Top News

Trump urged Republican lawmakers to link funds to reopen the Department of Homeland Security to voter ID legislation and remain in Washington through the Easter holiday if needed — imploring them to "make this one for Jesus."

Trump said he doesn't want immigration agents detailed to airports to wear masks as they assist with security screenings — even as he continued to support officers using face coverings during deportation operations.

Immigration and Customs Enforcement (ICE) agents as travelers wait in line to be screened at a Transportation Security Administration (TSA) checkpoint at Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, US, on Monday, March 23, 2026. President Donald Trump said he's ready to deploy Immigration and Customs Enforcement agents to US airports as soon as Monday if congressional Democrats dont agree to a plan for funding parts of the Department of Homeland Security. Photographer: Elijah Nouvelage/Bloomberg — Immigration and Customs Enforcement agents at Hartsfield-Jackson Atlanta International Airport in Atlanta.

The Supreme Court signaled a divide over Republican calls to require mail-in ballots to arrive by Election Day, with key justices voicing concern about the impact the case might have on the practice of early voting.

The Trump administration asked the Supreme Court to block a government watchdog group from questioning a senior official and obtaining internal records about the Department of Government Efficiency project once led by Elon Musk.

The ongoing legal standoff between the Trump administration and Federal Reserve is increasing the likelihood that the next Fed chief won't be confirmed by the Senate before Chair Jerome Powell's term ends in May.

A once-bipartisan effort to create a Smithsonian women's history museum has fallen victim to familiar partisan fights over transgender inclusion and Trump's power.

Colleges are racing to comply with Trump's demand for sweeping admissions data by Wednesday's deadline and bracing for those records to fuel a new crackdown on campus diversity efforts.

The Trump administration said it has launched two new investigations into Harvard University over alleged antisemitism on campus and racially discriminatory admissions practices.

The investment firm Jared Kushner runs with money gathered from government-backed funds across the Middle East — Affinity Partners — saw assets jump nearly 30% last year, according to a regulatory filing.

The US plans to contribute $250 million toward an investment consortium that would help fund projects aimed at strengthening supply chains for energy and critical minerals.

Must Reads From Bloomberg Government

Continental Strategy LLC, a fast-growing K Street firm with ties to the Trump administration, is bringing on a new lobbyist from Vice President JD Vance's team.

The White House is urging lawmakers to replace a patchwork of state AI rules with a uniform set of federal regulations, but a lack of consensus could doom the effort.

Historic preservationists have challenged Trump's stated plans to renovate the Kennedy Center, in at least the second federal court lawsuit fighting changes to the decades-old performing arts venue.

Watch & Listen

Today on Bloomberg Television's Balance of Power early edition at 1 p.m., hosts Joe Mathieu and Kailey Leinz interviewed Anja Manuel, Aspen Strategy Group Executive Director and former US diplomat, about the latest developments in the war with Iran.

On the program at 5 p.m., they talk with Republican Senator Mike Rounds, about the situation in the Middle East and the standoff in Congress over Homeland Security funding and voter ID.

On the Big Take podcast, Bloomberg's global defense editor, Gerry Doyle, tells David Gura about the challenges of clearing mines from the Strait of Hormuz — especially before the shooting stops. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

Some good news: Drug overdose deaths in the US are down dramatically from their peak in the summer of 2023, dropping by around 40%, according to mortality data in the National Vital Statistics System. Part of the reason may be tougher enforcement that's cut the supply of materials used to make fentanyl, which forced some dealers to make a less potent and deadly drug. Ohio had the largest decrease since mid-2023, when the nation's opioid overdose deaths peaked. Arizona, however, has experienced a 24% increase over the past year. Overall, over the past 12 months ending in October 2025, deaths are down to 68,400. A decrease of 43,000 from June 2023. — Alex Tanzi

What's Next

Peak bloom for the cherry trees around the Tidal Basin in Washington is forecast by the National Park Service to come this week.

The Supreme Court hears arguments on asylum seekers at the US-Mexico border tomorrow.

US labor productivity in the final quarter of 2025 will be reported tomorrow.

Import and export prices in February will be released Wednesday.

G-7 foreign ministers meet Thursday in Paris for two days.

The University of Michigan's index of consumer sentiment in March will be published Friday.

The Conference Board's measure of consumer sentiment and expectations in March will be released March 31.

Job openings and layoffs in February will be reported March 31.

Retail sales in February will be released April 1.

The jobs report for March will be released April 3.