President Donald Trump sought to assuage voters' fears about the cost of living despite higher energy prices stemming from his war in Iran at a rally to build support for his economic record ahead of November's midterm elections.
"We had the best economy in the history of our country in my first term," Trump said at an event in Las Vegas Thursday. "We're blowing it away now. And despite our little diversion, despite our little diversion to the lovely country of Iran."
Trump said that his consultants had warned that oil prices could spike as high as $300 a barrel and it could spark a "depression" if the US were to attack Iran.
"But I said, 'I don't think so. I think we're going to be good. We always find a way,'" Trump said. "That's not going to happen, because we just hit a brand-new all-time high."
Trump's optimism has been reflected by investors with both the S&P 500 Index and Nasdaq 100 setting record highs on Thursday for the second day in a row as traders made bets that the US president would soon make good on his pledge for a quick resolution to the conflict.
But oil prices remain much higher as crude shipments through the Strait of Hormuz have come to a standstill, sending gasoline prices soaring. The global crude benchmark Brent sits at about $98 a barrel, compared to roughly $72 a barrel before the start of the war.
Trump is on a west-coast swing with stops in Nevada and Arizona, two swing states he carried in 2024. The trip reflects a growing recognition inside the administration and among congressional Republicans that the party must remind voters of its economic accomplishments as affordability issues weigh heavily on American households.
The effort has taken on new urgency as the White House grapples with an increasingly unpopular war with Iran. Polls show a majority of Americans disapprove of the president's handling of the war and blame him for rising gasoline prices.
Trump touted one of the provisions in his tax law that allows some Americans to temporarily deduct tips from their federal tax bills.
One of Republicans' biggest challenges to improving their messaging, however, has been Trump himself. The president frequently strays off topic, speaking about the war in Iran and transgender athletes in college sports, as he did so on Thursday.
Several Republicans this week called for Trump to come up with a plan to wind down the war, noting the strain facing consumers and farmers from the closing of the Strait of Hormuz, which carries roughly a fifth of global oil supplies.
Trump's economic pitch, though, could be a tough sell for voters already struggling with the cost of gas, health care and other goods. They are receiving tax refunds that are bigger than last year, but much smaller than Trump promised in the months leading up to filing season.
More people have collected tax refunds this year than last, and those refunds are averaging nearly $350 higher than in 2025, according to IRS data. But that's only about one-third of the $1,000 average bump Trump pledged.
There are also early signs that taxpayers have barely noticed the boost. In a recent poll conducted by the Bipartisan Policy Center, only 27% of respondents said last year's tax changes benefited them, while 24% said they hurt them and 38% said they didn't see a difference.
To highlight Trump's tax policies, the White House on Monday staged a photo opportunity with a DoorDash driver who delivered a McDonald's order. Trump asked the driver whether she had benefited from his "no tax on tips" policy and, after a reporter inquired about the White House's tipping practices, handed her $100 in cash.
Trump will next travel to Phoenix for an event Friday hosted by Turning Point USA, an organization that has been a mobilizing force for young conservative voters—a group Republicans are eager to energize. That event will carry an emotional backdrop coming after the September killing of the group's founder Charlie Kirk.