Gas Prices Have a 21% Approval Rating and Midterms Are Coming. Here's What That Means for Retail Investors.

The geopolitical conflict in the Middle East has dramatically shifted political views in the United States. That's hardly surprising, given that armed conflict between countries is a rather polarizing issue. However, the high oil prices resulting from the ongoing conflict in the Middle East are having specific impacts that could prompt consumers to change their buying habits.

Shocking news: Consumers don't like high gasoline prices

A recent political poll found something so obvious it almost doesn't warrant mention: consumers don't like high gasoline prices. That's the big-picture read from CNN's poll, which found that only 21% of respondents approve of the way President Donald Trump is handling gas prices. That only 26% approve of his handling of inflation, which is running hot right now, is similarly obvious.

Image source: Getty Images.

High gas prices and inflation are both tied to the ongoing conflict in the Middle East, which has disrupted global energy markets. That has resulted in high energy prices, which quickly flow through to gasoline prices. However, energy is vitally important to the world, and high prices eventually impact the prices of other products. Nobody wants to pay higher prices, so the mood among voters is logically downbeat.

Buyers are adjusting, and Walmart is benefiting

That said, this isn't all bad news from an investment perspective. When consumers are worried about the economy, as they are today, they tend to tighten their budgets. One easy way to do that is to shift from higher-price stores to lower-price stores. Walmart (WMT 0.82%), for example, has been doing very well of late. In fiscal 2026, the giant retailer's sales rose 4.4% in the U.S. market, with same-store sales advancing 4.6%.

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NASDAQ: WMT

Walmart

Today's Change

(-0.82%) $-0.99

Current Price

$120.35

Key Data Points

Market Cap

$959B

Day's Range

$118.91 - $121.92

52wk Range

$93.43 - $135.16

Volume

1.5M

Avg Vol

19.3M

Gross Margin

23.48%

Dividend Yield

0.80%

The recently ended fiscal first quarter of 2027 showed continued strength, with U.S. sales up 4.4% and same-store sales rising by 4.1%. Other low-price retailers are doing well, too. Dollar Tree (DLTR 0.76%), for example, saw fiscal 2025 sales rise 9% with same-store sales up 5%. It will report its first-quarter results shortly, and, based on Walmart's results, the reading is likely to be good.

More good news from more bad news?

What's important to note here is that the most recent results from Walmart and Dollar Tree don't fully reflect the swift rise in inflation since the conflict in the Middle East began. The strong sales results highlight that consumers were concerned before the spike in energy costs and the broader rise in inflation. So voters' negative views of President Trump's handling of gasoline prices and inflation could signal that retailers like Walmart and Dollar Tree will continue to see strong consumer demand for the foreseeable future.