Recent military actions by Israel against Iran have led to a significant rise in oil prices, creating new economic challenges for President Trump's administration.
Escalation of Conflict and Oil Price Increase
The situation rapidly deteriorated following Israel's airstrikes on Iran, which began on Thursday. By noon on Friday, global benchmark oil prices had reached $73 per barrel, an $8 increase in just over a day. Analysts warn that this may only be the beginning.
Market Response to Geopolitical Instability
Experts predict that if the conflict continues and impacts key export points, the price of oil could reach $100 per barrel. Patrick De Haan, a GasBuddy.com analyst, believes that gas prices could rise by 25 cents per gallon in the coming weeks. Currently, the average price is $3.13 per gallon.
Trump's Tools to Lower Prices
The Trump administration faces limited options for lowering oil prices. The most significant tool is the Strategic Petroleum Reserve, which has already been significantly drained after last year's usage. Energy Department officials claim they are working to reduce regulatory costs on energy production.
Thus, the escalation of conflict in the region directly impacts global oil prices, creating economic difficulties for the current U.S. administration.
