Trump predicts $2.50 gasoline price as Italy prolongs diesel tax relief

U.S. President Donald Trump said gasoline could fall to $2.50 per gallon if tensions in the Strait of Hormuz ease, linking lower fuel costs to a de‑escalation of the strategic waterway. He used the prospect of cheaper gasoline to tout his administration’s economic record, citing high stock‑market levels, record employment and reduced costs for American drivers.

In Italy, Prime Minister Giorgia Meloni’s government extended the diesel‑tax cut until 25 August, keeping a 17‑cent‑per‑liter reduction (including VAT) in place to shield motorists from rising fuel prices. Finance Minister Giancarlo Giorgetti said the measure was adopted after the original cut in March, which responded to oil‑price spikes caused by the Iran‑related conflict. The tax relief applies only to diesel; gasoline remains excluded. Giorgetti indicated he will ask the European Union for additional fiscal space to fund defence and energy spending.