High Gas and Rising Mortgage Rates Trouble Trump as Midterms Near

Gas prices climbed, mortgage costs soared and investors on Wall Street grew jittery this week, intensifying a political maelstrom surrounding President Trump with just over a month until voters cast their ballots in the 2026 midterm election.

For Americans stung by years of persistently high prices, the end of September brought little obvious relief, as a long unresolved war with Iran continued to ripple across the U.S. economy in ways that made the nation’s battle with inflation all the more vexing.

Oil prices whipsawed around $100 per barrel while costs at the pump remained high, with a gallon of gasoline reaching an average of nearly $4.50 nationally by Friday, according to AAA. The more concerning spike occurred in diesel, which topped $6.50 per gallon, raising the possibility that high transportation and shipping costs could make groceries and other goods more expensive soon, too.

The energy shock fanned fears of worsening inflation, which consequently sent yields on some government bonds to the highest level in more than two decades. That made federal borrowing more expensive, but the problem was not confined to Washington, as the sharp turn in yields also sent rates on 30-year mortgages surging above 7 percent by the week’s end.

Article source: https://www.nytimes.com/2026/09/26/business/trump-economy-midterm-elections.html