Inflation in the United States is linked to ongoing geopolitical instability in the Middle East, according to House Speaker Mike Johnson (R-La.), who ascribes current gas prices to the Strait of Hormuz stalemate.
Americans are paying an average of $4.52 a gallon for regular gasoline, up from some $3 prior to the Iran conflict that started in February. As a result, 44 percent of Americans have cut back on driving, according to an Ipsos poll.
The economic policies Johnson referred to include the Working Families Tax Cut, which was enacted as part of the broader One Big Beautiful Bill Act.
The legislation permanently expands and doubles the Child Tax Credit, allows car buyers to deduct up to $10,000 for interest paid on car loans for U.S.-assembled vehicles, exempts federal taxation on tips, Social Security income for retirees, and overtime hours for workers.
“These are pro-growth policies that will lead to a bigger paycheck,” Johnson said. “We already have the largest tax refund we've had in a long, long time because of our policies and so we're really excited and anxious for the Strait of Hormuz to be resolved so that people will feel that and I think they will before they go vote in the midterms."
The midterm elections will take place on Nov. 3.
On May 5, War Secretary Pete Hegseth announced Project Freedom, a new military operation that aims to restore commerce throughout the Strait of Hormuz, which is an international waterway bordered by Iran, Oman, and the United Arab Emirates (UAE).
The goals of Project Freedom include providing 24-hour protection with a red, white, and blue dome over the Strait, enforcing the U.S. blockade, ending Iran’s tolling system, and preventing potential shortages of energy worldwide.
“I know that there are negotiations going on in earnest,” Johnson said. “I know that the president is on this every single day. We're pushing it as aggressively as we can because we know about the gas prices. We're hugely aware of what that means to American families. We got to get that settled out and I can tell you that the entire administration and all of us in Congress are working on that."