California Governor Gavin Newsom renewed criticism of President Donald Trump and Energy Secretary Chris Wright on Wednesday, accusing them of scapegoating the state for elevated energy costs driven by the Iran war.

The Governor’s Press Office highlighted a Wall Street Journal report stating Americans have paid $100 billion in excess fuel costs since the conflict began in February 2026. Newsom dismissed claims that California’s policies or imports were responsible for national price spikes.

Political Clash Over Fuel Costs

Newsom’s office quoted Wright’s reference to an "Iran war blend" of gasoline, accompanied by an AI-generated image of Trump at a Chevron Corp (NYSE: CVX) station. The Governor labeled Wright as Trump’s "Chief Oil Shill" for blaming Sacramento for national fuel price increases.

Wright had previously criticized Newsom, citing California’s imports of Iraq-sourced oil as a national security concern. In response, Newsom’s team shared social media posts highlighting high fuel costs in Ohio to illustrate that the issue extends beyond California.

Market Data and Price Levels

Amid the geopolitical tensions, crude oil futures saw slight declines. West Texas Intermediate (WTI) crude futures for October slipped 1.25% to $101.15. Brent crude futures for November fell 1.67% to $104.06.

Retail fuel prices remained elevated across the United States. The national average gasoline price stood at $4.3672 per gallon, while diesel crossed the $6.3 mark to reach $6.3103 per gallon.

Data sourced from the American Automobile Association (AAA) shows California consumers paying significantly higher rates, with diesel averaging $8.2668 per gallon compared to the national figure.

Related Market Movements

In overnight trading, the United States Oil Fund (NYSE: USO) slipped 1.15% to $154.37. Conversely, the ProShares Ultra Bloomberg Crude Oil (NYSE: UCO) ETF rose 0.13% to $52.36.

Fed Rate Hike Criticism

Trump trade adviser Peter Navarro slammed Federal Reserve Chair Kevin Warsh regarding the central bank’s decision to hike interest rates by 25 bps. Navarro argued the rate increase would harm the economy, noting that Iran-war-induced energy costs already functioned like a rate hike.

Sen. Elizabeth Warren accused President Donald Trump of committing Americans to another prolonged Middle East conflict, citing reports that senior officials expect the Iran war to last through the end of his term.

Divergence in War Timeline Estimates

Warren criticized Trump on X after The Wall Street Journal reported that top White House advisers have discussed the possibility of the conflict continuing until January 2029. This internal assessment contrasts sharply with Trump’s public statement on Wednesday that the war would end "immediately" after the November midterm elections.

"Donald Trump signed Americans up for another endless war," Warren said, sharing the report. She noted that while Trump claims the conflict will conclude shortly after the midterms, his officials privately anticipate a much longer duration.

Trump argued that Iran is "desperate" to influence the election and prevent voters from choosing what he described as a "nice, weak group of people." Investor Peter Schiff called Trump’s comments the president’s "latest lie," arguing that an end before the election is unlikely.

White House Advisers Prepare For Prolonged Conflict

According to the Journal, Vice President JD Vance, Secretary of State Marco Rubio, and other senior officials have privately raised concerns that Tehran could continue resisting U.S. pressure despite a naval blockade and sanctions.

Vance previously declined to offer a timeline for the conflict, stating it would be irresponsible to provide Iran with an "artificial timeline." White House spokeswoman Olivia Wales defended Trump’s strategy, saying he has severely weakened Tehran’s economy through unprecedented measures. Wales added that Trump alone would decide how and when the conflict ends.

Trump’s Approval Rating Hits New Low

In the latest NBC News Decision Desk poll, Trump’s approval rating fell to 36%, down one point from the spring and the lowest in the poll’s history. His disapproval rating rose to 64%, also a new high.

While Trump has faced weak overall ratings before, declining support among his Republican base could be more concerning. His approval among GOP voters fell to 80%, from 83% in the spring poll.

Market Impact and Oil Prices

On Monday, Trump predicted that oil prices will fall "precipitously" after a U.S. victory over Iran, forecasting gas prices will drop to $3 a gallon and eventually below $2. At the time of writing, WTI crude oil was at $102.26 per barrel, while Brent crude reached $107.57 per barrel.

On Thursday, speaking to Fox News host Laura Ingraham, Trump said he would have attacked Iran regardless of the impact on the midterm elections.