Average gas prices in the U.S. have dropped to below $4 per gallon for the first time since April, according to the latest data from GasBuddy. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite are all soaring on Monday. It’s all thanks to the latest “Iran Deal” touted by President Donald Trump to bring an end to the war and reopen the Strait of Hormuz. If it feels like we’ve been here before, that’s because we have. President Trump has previously promised an end to the war, which started Feb. 28, and the reopening of the Strait, two things that simply haven’t happened. While there are no indications that this “deal” will change the material reality in the Middle East, the people who move money around in spreadsheets for a living seem to be buying the hype. Nationally, gas prices are currently averaging $3.98, according to GasBuddy, down 14 cents from last week’s average and down 53 cents from last month’s average. The average price of gas shortly before Trump started his war in Iran was about $2.90.
The idea of the Tinkerbell economy isn’t new. Financial markets can run on fumes for a very long time, just as long as people believe things are going well. In fact, an article published Monday in The New World makes the case that Elon Musk’s financial success depends on little more than believing in him like Tinkerbell. The broader economy seems to work that way as well during Trump’s second term.
