Jet-Fuel Prices Are Spiking and Trump’s Advisers Are Worried
Administration officials have spoken to the airline industry, which has voiced concerns about the rising costs.
Administration officials have spoken to the airline industry, which has voiced concerns about the rising costs.
Former New Hampshire Gov. Chris Sununu delivered a warning to Treasury Secretary Scott Bessent during a recent visit to Washington: Already-high airfares will surge if the war in Iran doesn’t end soon.
Sununu, a Republican who represents some of the biggest airlines as president of the industry group Airlines for America, has for weeks sounded the alarm to Trump administration officials about the economic fallout from high jet fuel prices. The war, Sununu has argued, must come to a close soon, or things will get worse.
Administration officials have gotten the message.
Privately, President Trump’s advisers are increasingly worried that Republicans will pay a political price for the rising fuel costs, according to people familiar with the matter. Many of those advisers are eager to end the war, hoping prices will begin to moderate before November’s midterm elections.
The fallout from the U.S.-Israeli attack in late February has slowed traffic through the Strait of Hormuz, a vital shipping lane, triggering a sharp increase in oil, gasoline and jet-fuel prices.
That means consumers are grappling with high costs ahead of the summer travel season, as they consider vacation plans.
Sixty-three per cent of Americans said they put a great deal or a good amount of blame on Trump for the increase in gas prices, according to a new poll conducted by NPR, PBS and Marist.
More than 8 in 10 Americans said struggles at the gas pump are putting strain on their finances.
Jet-fuel prices roughly doubled in a matter of weeks after the war began, and they have remained high. Airlines have said that will add billions of dollars of additional expenses this year, squeezing profit margins.
U.S. airlines spent more than $5 billion on fuel in March—up 30% from a year earlier, according to government data.
Carriers have been raising ticket prices, hoping to pass the cost along to consumers, and they are culling flights that will no longer make money at higher price levels.
In March, the price of a U.S. domestic round-trip economy ticket rose 21% from a year earlier to $570, according to Airlines Reporting Corp., which tracks travel-agency sales.
So far, airlines have said the higher fares haven’t deterred bookings and they are hoping to recoup more of the fuel-cost increases as the year goes on.
Earlier this week, Trump said the current price of oil is “a very small price to pay for getting rid of a nuclear weapon from people that are really mentally deranged.”
Secretary of State Marco Rubio told reporters that if Iran got a nuclear weapon, the country would have more leverage to keep the strait closed and “make our gas prices like $9 a gallon or $8 a gallon.”
Trump has taken steps in recent days to bring the war to an end. Late Tuesday, the president paused a plan to help guide trapped commercial ships out of the Strait of Hormuz, expressing optimism that a deal could be reached with Iran to end the conflict.
Crude oil prices fell below $100 a barrel on Wednesday, after reports that Iran and the U.S. are working with mediators on a one-page framework to restart negotiations aimed at ending the conflict and opening the strait.
Sununu said Trump administration officials are conscious of the economic fallout from the war: “They get it…and I think that’s why they’re trying to get through the war as fast as they can.”
But he cautioned that it could take months for prices to return to prewar levels.
“Ticket prices won’t go down immediately” after the strait is fully reopened, Sununu said. “You’re looking at elevated ticket prices through the summer and fall because it takes a while for the prices to go down.”
Since the initial U.S.-Israeli attack in late February, Sununu has met in Washington with National Economic Council Director Kevin Hassett, representatives from the Transportation Department and senior White House officials.
A White House official confirmed that Hassett and Sununu have discussed the effect of increased fuel prices on the airline industry. The official said the conversation touched on how the industry can mitigate the impact of high jet fuel prices on consumers.
“The president and his entire energy team anticipated these short-term disruptions to the global energy markets from Operation Epic Fury and had a plan prepared to mitigate these disruptions,” White House spokeswoman Taylor Rogers said, pointing to the administration’s decision to waive a century-old shipping law in a bid to lower the cost of moving oil.
Rogers said the administration is working with industry representatives to “address their concerns, explore potential actions, and inform the president’s policy decisions.”
A Treasury Department spokesman pointed to Bessent’s recent comments on Fox News that the U.S. economy remains strong despite price increases. The spokesman said Treasury officials have met with airline executives, who have reaffirmed strong ticket bookings.
“We’re cognizant that this short-term move up in prices is affecting the American people, but I am also confident, on the other side of this, prices will come down very quickly,” Bessent told Fox News on Monday.
The war has already contributed to one casualty in the industry: Spirit Airlines. Company representatives have said they were forced to close the airline because the sustained surge in jet-fuel prices derailed the company’s plan to emerge from chapter 11 bankruptcy.
The Trump administration and Spirit failed to come to an agreement for the company to receive a financial lifeline of as much as $500 million from the federal government.
Transportation Secretary Sean Duffy has argued that the Iran war wasn’t the cause of Spirit’s demise, pointing to the company’s past financial struggles, as well as the Biden administration’s decision to challenge a merger with JetBlue.
Other budget airlines have also turned to the federal government for help since the U.S.-Israeli attack. A group of budget airlines last month sought $2.5 billion in financial assistance to offset higher fuel costs, and they separately wrote to lawmakers asking for relief from certain ticket taxes.
Studio apartments have almost disappeared from new Australian developments. Lura is bringing them back to Burleigh Heads from $495,000.
Porsche’s Cayenne Turbo Electric produces up to 1,156PS and reaches 100km/h in a claimed 2.5 seconds.
The ASX 200 gained 0.4 per cent in the week ended 9 October as property and energy rose while technology and small caps declined.
The S&P/ASX 200 finished the week ended 9 October at 8,716.6, up 0.4 per cent, but the headline concealed a sharply divided market as listed property, energy and selected blue chips advanced while technology, iron ore miners and smaller companies fell.
Australia’s sharemarket finished the week higher, but the gain was less convincing than the index alone suggested.
The S&P/ASX 200 closed Friday, 9 October at 8,716.6, gaining 0.4 per cent over the five trading sessions. The broader All Ordinaries added 0.26 per cent to 8,877.7. By contrast, the Small Ordinaries fell 1.34 per cent to 3,281.9, showing that the market’s progress relied heavily on larger, more liquid companies rather than a broad increase in investor confidence.
The index’s path was uneven. It edged up on Monday, rose 0.57 per cent on Tuesday, slipped 0.09 per cent on Wednesday and lost 0.77 per cent on Thursday before recovering 0.64 per cent on Friday.
That final-session rise of 55.7 points allowed the benchmark to finish the week in positive territory and brought it approximately back to break-even for the calendar year.
The strongest sector was listed property, which gained 3.73 per cent. The move was visible in Goodman Group, one of the market’s largest property securities, which rose 4.82 per cent across the week based on adjusted closing prices.
A-REITs remain sensitive to movements in global bond yields, funding costs and asset valuations, so the sector’s strength indicated a meaningful rotation towards income-producing real assets. It did not eliminate the longer-term questions surrounding office demand, asset valuations, development pipelines or refinancing costs.
Energy gained 2 per cent as Brent crude finished the week around US$101.42 a barrel, up approximately 0.85 per cent. Woodside Energy rose 3.46 per cent over the week, although the sector was far from uniform.
Uranium shares came under pressure on Friday, with several names falling sharply. That demonstrated why a supportive move in the energy index should not be interpreted as a universal signal for every energy commodity or producer.
Technology was the weakest major sector, declining 1.97 per cent over the week despite a substantial rebound on Friday. Pro Medicus, WiseTech Global and Life360 all rallied in the final session after suffering sizeable drawdowns from their August levels. The late recovery softened the weekly damage without erasing the market’s broader caution towards higher-valuation growth shares.
Materials also struggled. BHP fell 0.44 per cent over the week, Rio Tinto lost 1.48 per cent and Fortescue declined 5.25 per cent. The size of those companies meant their weakness offset part of the support supplied by property, energy and healthcare.
The banks were another drag. Commonwealth Bank fell 1.43 per cent, Westpac declined 1.75 per cent, National Australia Bank lost 2.13 per cent and ANZ eased 0.51 per cent.
Macquarie Group moved in the other direction, gaining 1.12 per cent. With the major banks representing an unusually large share of the Australian index, even modest simultaneous falls can materially restrain the benchmark.
Healthcare provided some of the strongest large-cap performances. CSL rose 4.84 per cent and ResMed gained 2.49 per cent. General insurer QBE advanced 5.63 per cent, making it the strongest performer among the 20 large-cap companies tracked below.
Consumer-facing companies also contributed. Woolworths rose 3.23 per cent, Coles gained 1.22 per cent and Wesfarmers added 1.48 per cent. Aristocrat Leisure finished 2.91 per cent higher. Those gains helped balance the losses across the banks and diversified miners.
The following figures compare adjusted closing prices on Friday, 2 October with Friday, 9 October. Percentages have been rounded to two decimal places.
The top 20 is based on the largest-company framework used for this wrap. Rankings can change with share prices, index reviews and corporate actions.
Commonwealth Bank (CBA): Down 1.43 per cent, from $151.45 to $149.29.
BHP Group (BHP): Down 0.44 per cent, from $61.21 to $60.94.
Westpac Banking Corporation (WBC): Down 1.75 per cent, from $34.32 to $33.72.
National Australia Bank (NAB): Down 2.13 per cent, from $38.50 to $37.68.
ANZ Group (ANZ): Down 0.51 per cent, from $37.37 to $37.18.
Wesfarmers (WES): Up 1.48 per cent, from $76.22 to $77.35.
Macquarie Group (MQG): Up 1.12 per cent, from $245.63 to $248.37.
CSL (CSL): Up 4.84 per cent, from $175.35 to $183.84.
Woodside Energy (WDS): Up 3.46 per cent, from $31.24 to $32.32.
Rio Tinto (RIO): Down 1.48 per cent, from $164.81 to $162.37.
Goodman Group (GMG): Up 4.82 per cent, from $25.91 to $27.16.
Woolworths Group (WOW): Up 3.23 per cent, from $38.35 to $39.59.
Telstra Group (TLS): Down 1.24 per cent, from $4.83 to $4.77.
Fortescue (FMG): Down 5.25 per cent, from $16.19 to $15.34.
Coles Group (COL): Up 1.22 per cent, from $23.03 to $23.31.
Northern Star Resources (NST): Up 1.54 per cent, from $24.02 to $24.39.
QBE Insurance Group (QBE): Up 5.63 per cent, from $23.81 to $25.15.
Aristocrat Leisure (ALL): Up 2.91 per cent, from $59.76 to $61.50.
ResMed (RMD): Up 2.49 per cent, from $31.79 to $32.58.
James Hardie Industries (JHX): Up 0.06 per cent, from $36.07 to $36.09.
The Top 20 results show why the overall index could advance despite weakness in the banks and miners. Eleven of the 20 companies finished higher, but more importantly, several of the gains were substantial.
QBE, CSL and Goodman rose close to or above 5 per cent, while Woodside and Woolworths advanced more than 3 per cent. Those moves countered falls across all four major banks and the three largest diversified iron ore exposures.
Fortescue was the weakest company in the group, down 5.25 per cent. National Australia Bank recorded the largest decline among the major banks, while Rio Tinto was the weaker of the two larger diversified miners after Fortescue.
It is important not to invent a company-specific explanation where none was confirmed. Some weekly movements reflected sector rotations, commodity prices, interest-rate expectations and changes in investor positioning rather than a fresh announcement by the company.
Where no material ASX announcement clearly explained the move, the percentage should be treated as market performance rather than evidence of a particular event.
Trading week: 5–9 October 2026.
S&P/ASX 200: 8,716.6, up 0.40 per cent.
All Ordinaries: 8,877.7, up 0.26 per cent.
Small Ordinaries: 3,281.9, down 1.34 per cent.
Best sector: Listed property, up 3.73 per cent.
Weakest sector: Information technology, down 1.97 per cent.
Energy: Up 2.00 per cent.
Brent crude: Approximately US$101.42 a barrel, up 0.85 per cent.
AUD/USD at Friday’s close: Approximately US69.81 cents.
Strongest tracked large cap: QBE Insurance, up 5.63 per cent.
Weakest tracked large cap: Fortescue, down 5.25 per cent.
The immediate question is whether the rally can broaden. A market supported by a handful of large companies can continue rising, but it is more vulnerable if those leaders reverse.
Improvement in the Small Ordinaries and technology sector would provide stronger evidence that investors are becoming comfortable taking risk beyond defensive and income-producing assets.
Oil remains another major variable. Prices above US$100 a barrel can support producers such as Woodside, but they also increase transport, manufacturing and household costs. That creates a complicated backdrop for inflation and interest-rate expectations.
Global bond yields, US earnings and local company announcements will also shape the coming week. For Australian investors, the concentration of the domestic market means movements in the banks, BHP, Rio Tinto, CSL, Wesfarmers, Goodman and Woodside can overwhelm an otherwise mixed session.
The week’s 0.4 per cent gain was constructive, but it was not a declaration that risk had disappeared. The more accurate reading is that investors favoured selected large companies, listed property, energy and defensive consumer names while remaining cautious about smaller companies, technology and iron ore exposure.
That distinction matters. An investor whose portfolio resembled the headline index may have finished ahead. Someone weighted towards smaller companies, technology or bulk miners may have experienced a very different week.
This article provides general information only. It does not constitute personal financial advice or a recommendation to buy, sell or hold any security. Market prices and index composition can change rapidly.
Ophora Tallawong has launched its final release of quality apartments priced under $700,000.
A long-standing cultural cruise and a new expedition-style offering will soon operate side by side in French Polynesia.