House Minority Leader Hakeem Jeffries on Sunday criticized President Donald Trump's administration regarding the conflict with Iran, stating that it has cost American taxpayers over $100 billion and contributed to rising gas prices. Jeffries labeled the military initiative 'Operation Epic Failure,' arguing that the funds were wasted in what he described as a reckless war of choice. The comments were made via a post on X, where Jeffries linked the financial expenditure to the economic impact on ordinary citizens.

Gas Prices and Oil Market Reaction

Gas prices have risen, breaking an 8-week streak of declines. According to GasBuddy analyst Patrick De Haan, the national average price for gas increased by approximately 11 cents compared to the previous week, marking the first weekly rise since May. Data from the American Automobile Association (AAA) placed the national average at $3.8760 per gallon, with California and Hawaii experiencing the highest prices at $5.389 and $5.471 per gallon, respectively. Indiana reported the lowest average price at $3.247 per gallon.

The increase in gas prices correlates with a surge in oil markets. Brent crude was trading at $79.08 per barrel, reflecting a rise of over 4%, while West Texas Intermediate (WTI) crude increased by 4% to $74.30 per barrel. De Haan indicated that gasoline and diesel prices are likely to continue drifting higher, though not yet at the rapid pace observed earlier in the year.

Military Actions and Regional Tensions

The criticism from Jeffries coincides with renewed military engagement in the region. On Sunday, the U.S. Central Command (CENTCOM) announced it had conducted strikes on several Iranian assets, including missile defense systems and radar technology. These operations followed orders from Trump to hold the Iranian government accountable for its actions. The strikes occurred after Tehran declared it would close the Strait of Hormuz following a vessel's transit through a non-designated route. Iran's Supreme Leader Ayatollah Mojtaba Khamenei previously vowed retaliation against the United States.

Global oil demand has started to recover as shipments through the Strait of Hormuz partially resumed in June, though renewed fighting between the US and Iran has added uncertainty to the outlook, the International Energy Agency (IEA) said. Oil consumption has rebounded from a low of 97.9 million barrels a day in May, with the agency stating a recovery "is underway." By October, demand is projected to rise by more than 8 million barrels a day from the May low, placing it above 2025 levels for the first time since February.

IEA Revises Demand and Supply Forecasts

The IEA reported that global oil supply rebounded by a sharp 4.1 million barrels a day to 98.8 million barrels a day in June. Despite this recovery, world output remains 9.4 million barrels a day below pre-war levels. The agency cut its forecast for the year’s average oil demand growth to 1.0 million barrels a day, down from a previous estimate of around 1.1 million barrels a day due to the Iran conflict.

Geopolitical Risks and Economic Resilience

The International Monetary Fund (IMF) expects the reopening of the Strait of Hormuz to begin in mid-July, with conditions broadly returning to the pre-war state of affairs by March 2027. Oil flows have reached around 14 million barrels a day, including volumes bypassing the Strait, which is still below pre-war levels of 20 million barrels per day. The IMF noted that the global economy has weathered the war in the Middle East "better than feared," supported by inventory drawdowns, expanded production outside the Persian Gulf, and renewable energy adoption.

AI and Growth Outlook

Global growth in Q1 slowed to 3.0% on a quarter-over-quarter annualized basis, better than the 2.7% forecast by the IMF in April. The IMF projects global growth of 3% in 2026 and 3.4% in 2027. The fund attributed the economic resilience to an "ongoing positive technology shock" from advances in artificial intelligence (AI), which has provided a counterweight to war-related weakness. US GDP increased at an annualized rate of 2.1% in Q1 2026, supported by technology-related business investment.