Donald Trump said the "short-term" spike in oil prices is worth the cost if it eliminates Tehran's nuclear threat. He argued that prices would drop rapidly once Iran's nuclear capabilities are destroyed, calling it a small price to pay.
Amid surging global oil prices triggered by escalating conflict in West Asia, United States President Donald Trump said the "short-term" spike is worth the cost if it eliminates Tehran's nuclear threat. In a post on Truth Social, Trump argued that oil prices would "drop rapidly" once Iran's nuclear capabilities are destroyed, adding that "only fools would think differently." Calling it a small price to pay for American and world safety and peace, Trump wrote, "Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY!"
Oil Prices Surge Amid Conflict Fears
Trump's remarks to assuage the fears come after oil prices surged past USD 100 per barrel on Sunday--first time crossing the mark since the Russia-Ukraine conflict began in 2022, as reported by CNN Business. According to CNN Business, investors have expressed concern that the conflict with Iran would lead to prolonged restrictions on the flow of oil around the globe.
It added that the oil and gasoline prices have skyrocketed as the conflict with Iran drew in other countries of West Asia and the Gulf, including attacks on refineries in the region. It further reported that US oil futures rose 18 per cent to about USD 108 a barrel-- their highest level since July 19, 2022, while Brent futures, the global benchmark, increased to 16 per cent thus nearing USD 108 a barrel.
Economic and Political Fallout
As per the report by CNN Business, the surging oil prices have weighed heavily on stocks in recent days, with traders fearing that a prolonged spike in fuel prices could lead to another spike in inflation and hurt the economy. It further mentioned that Dow futures dropped more than 800 points, or 1.7%. S&P 500 and Nasdaq futures fell 1.6%.
In the wake of the US military strikes on Iran, the average price of gasoline in America touched $3.45 a gallon on Sunday, up 16% from the week prior, according to AAA as per CNN Business. It highlighted that a prolonged spike in oil and gas prices could aggravate affordability in the United States, thereby putting Trump and his party in a precarious political position ahead of the midterm elections this year.
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)