The US president has sought to allay fears that the military conflict he has initiated will exacerbate the global energy crisis
President Donald Trump said rising oil prices would not stop him from waging war on Iran, after Brent topped $100 a barrel on Sunday, marking the biggest daily gain since the start of the Covid-19 pandemic in 2020.
In response to US and Israeli airstrikes, Iran has closed the Strait of Hormuz and shot down tankers trying to cross the waterway, which is a route for about a fifth of the world’s oil supply. Iraq, the United Arab Emirates and Kuwait, all major oil producers, have cut output after the storage space ran out.
In a Truth Social post on Sunday, Trump played down the effects of his war on global trade.
“Short-term oil prices, which will fall rapidly when the devastation of the Iranian nuclear threat ends, is a very small price to pay for USA, and the world, safety and peace. Only a fool would think otherwise!” Trump wrote.
During his re-election campaign, Trump promised voters cheap gas and no more expensive wars. However, according to data from the American Automobile Association (AAA), the national average price of regular gasoline rose nearly 15% in the past week to about $3.45 per gallon, with some regions reporting increases of nearly 30%.
US Treasury Secretary Scott Besant said on Friday that Washington was exploring additional measures to lower oil prices, while Energy Secretary Chris Wright pledged to bring gasoline below $3 per gallon. “Too early.”
Last week, the Treasury formally allowed India to temporarily buy oil from Russia, Bessant said, potentially in the U.S. “approval” Most of Russia’s energy exports.
JP Morgan Chief Economist Bruce Kosman told Reuters “Near Circumstance” It could see crude prices rise to $120 per barrel before settling down “$80 bbl high by midyear” If the conflict persists. Russia’s presidential investment envoy Kirill Dmitriev said on Monday that oil prices could exceed $200 a barrel. “Prolonged conflict.”
