High oil prices, surging to over $100 a barrel, are ‘small price to pay’ as he wages Iran war
President Trump says surging oil prices are a short-term problem and a worthwhile sacrifice as the war in Iran causes supply concerns in energy markets.
West Texas Intermediate crude oil prices spiked to slightly over $100 per barrel on Monday, raising concerns about wider shocks to global economies.
“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,” Mr. Trump said on Truth Social late Sunday, adding in all caps for emphasis: “Only fools would think differently!”
Crude oil prices have not exceeded $100 per barrel since the Russian invasion of Ukraine in 2002.
Prices surged 35% last week because of the toll of the conflict in the Middle East.
Mr. Trump ordered joint U.S.-Israeli strikes against Iran on Feb. 28, saying Tehran did not agree to American demands during negotiations over the Islamic republic’s nuclear ambitions, missile programs and support for terrorist proxies in the Middle East.
SEE ALSO: Oil tanker clears Strait of Hormuz, Trump’s energy secretary says, as gas prices surge
Iran retaliated with strikes on oil-rich Gulf states and clamped down on traffic in the Strait of Hormuz, a vital sea channel for oil tankers.
Qatar’s Energy Minister Saad al-Kaabi told the Financial Times on Friday that oil prices could surge to $150 per barrel if traffic does not flow through the strait.
Soaring energy prices could reverberate across the economy. U.S. stocks plummeted last week due to concerns about oil prices and a protracted war with Iran.
The Trump administration is eyeing steps to jump-start traffic in the strait.
It announced a reinsurance program for ships that are worried about incurring losses in the Middle East. Mr. Trump also said the U.S. Navy might need to escort ships through the strait.
