The ongoing hostilities involving the United States, Israel, and Iran have drastically changed the global energy market and increased volatility in crude oil prices, creating concerns about potential interruptions in the availability of petroleum products. 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. Taking to Truth Social, US President argued that oil prices would “drop rapidly” once Iran’s nuclear capabilities are destroyed, adding that “only fools would think differently.”
Why did Donald Trump call the surge in oil prices a “very small price to pay”?
In reference to his desire for American and global safety and security through the end of all dangerous nuclear weapons in Iran, President Trump stated, “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!”
Trump makes remarks to help alleviate any fears on the part of investors following Sunday’s surge in prices for crude oil above USD100 per barrel, which is the first time they have gone over that mark since the war with Russia and Ukraine began back in 2022, according to a report 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.
Why are critics concerned about the economic fallout of the war-driven oil spike?
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.
What impact has the US-Israel military action had on global crude markets?
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. March 10 marks the eleventh day to the ongoing conflict.
(With ANI inputs)
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