Trending Now - Oil Market Turmoil Sparks Legislative Push for Family Relief
WHO:
Sen. Sheldon Whitehouse (D-RI) and Rep. Ro Khanna (D-Calif.) reintroduced the Big Oil Windfall Profits Tax Act.
Patrick De Haan, a petroleum expert at GasBuddy, referred to President Trump's waiver of the Jones Act as a "band-aid" solution.
President Trump issued a 60-day waiver of the Jones Act.
Patrick De Haan, a petroleum expert at GasBuddy.
Carl B. Weinberg, chief economist at High Frequency Economics.
Stephen Stanley, chief U.S. economist at Santander.
WHAT:
The Big Oil Windfall Profits Tax Act would impose a per-barrel tax equal to 50% of the difference between the current price per barrel of oil and the average price per barrel last year.
At $100 per barrel of oil, the levy would raise approximately $33 billion per year.
Single filers would receive approximately $216 annually and joint filers would receive roughly $324 annually from the tax revenue.
The average price for gasoline in the U.S. reached $3.84 per gallon on March 18th, 2026, the highest level since September 2023.
A barrel of Brent crude oil rose to approximately $108.40 on March 18th, 2026, while U.S. West Texas Intermediate traded near $98.50.
The spread between Brent and WTI crude prices widened to roughly $10 per barrel, indicating increased stress in seaborne supply markets.
U.S. gasoline prices increased to an average of $3.84 per gallon, up from $2.92 a month ago.
Diesel prices topped $5 a gallon for the first time since 2022.
Diesel prices exceeded $6 a gallon in California, Hawaii, and Washington.
A barrel of Brent crude oil rose to $111.45 on March 18th, 2026.
The price for a barrel of benchmark U.S. crude rose to $99.24.
U.S. wholesale prices rose by 3.4% in February 2026 compared to February 2025.
The producer price index rose 0.7% from January 2026.
Food prices increased by 2.4% from January 2026, with vegetable prices surging by 49% and fruit prices by 10%.
Core wholesale prices rose 0.5% from January 2026 and 3.9% compared to a year earlier.
WHERE:
The Strait of Hormuz, a critical shipping route in the Middle East.
California, Hawaii, and Washington, where diesel prices exceeded $6 a gallon.
WHEN:
The U.S. and Israel attacked Iran on February 28th, 2026.
The average price for gasoline reached $3.84 on March 18th, 2026.
The Labor Department reported the producer price index on March 18th, 2026.
WHY:
The war in Iran is causing gas prices to rise by 27%, with Americans spending $2 billion daily on gas.
The legislation aims to curb profiteering by oil companies and provide relief to American workers affected by rising gas prices.
The surge in oil prices is attributed to ongoing disruptions in the Strait of Hormuz due to military activity related to the U.S.-Israeli war with Iran, which has raised insurance and freight costs for oil shipments.
Rising gas prices are attributed to the ongoing Iran war affecting energy infrastructure and shipping.
The increase in wholesale prices is driven partly by a sharp rise in food costs and energy prices due to the Iran war.
HOW:
Revenue raised from the windfall profits tax would be returned to consumers in the form of a quarterly rebate, phasing out for single filers earning more than $75,000 and joint filers earning more than $150,000.
President Trump’s waiver of the Jones Act is intended to ease energy prices by allowing goods to be shipped on non-U.S. vessels.
The producer price index measures inflation before it reaches consumers, indicating rising costs in the supply chain.
(UPDATED March 19, 2026 03:48 UTC)
Senator Sheldon Whitehouse and Representative Ro Khanna have reintroduced the Big Oil Windfall Profits Tax Act, which aims to impose a per-barrel tax of 50% on the difference between current oil prices and last year's average, potentially raising around $33 billion annually. With gas prices soaring by 27% due to the ongoing conflict in Iran, the legislation seeks to address the rising costs that are burdening American consumers, providing rebates of approximately $216 for single filers and $324 for joint filers. The revenue generated from this tax would be returned to consumers through quarterly rebates, phasing out for higher earners.
--
(UPDATED March 19, 2026 01:24 UTC)
Gasoline prices in the U.S. hit an average of $3.84 per gallon on March 18, marking the highest level since September 2023. On the same day, Brent crude oil prices rose to about $108.40 a barrel, while U.S. West Texas Intermediate was near $98.50, widening the spread between the two to roughly $10 per barrel. This surge in oil prices is largely due to ongoing disruptions in the Strait of Hormuz, linked to military activity from the U.S.-Israeli conflict with Iran, which has increased insurance and freight costs for oil shipments.
--
(UPDATED March 18, 2026 23:12 UTC)
Today, President Trump announced a 60-day waiver of the Jones Act in an effort to ease soaring energy prices, as U.S. gasoline prices have surged to an average of $3.84 per gallon, up from $2.92 just a month ago. Diesel prices have also hit alarming levels, exceeding $6 a gallon in states like California, Hawaii, and Washington, largely due to the ongoing conflict in Iran affecting energy infrastructure and shipping routes. The Labor Department reported today that wholesale prices rose by 3.4% in February compared to the previous year, with significant increases in food costs contributing to the overall inflation.