Opinion National Interest PoV 50-Word Edit

ThePrint On Camera Videos In Pictures

Society & Culture Around Town Book Excerpts Vigyapanti The Dating Story

More Judiciary Education YourTurn Work With Us Campus Voice

Opinion National Interest PoV 50-Word Edit

ThePrint On Camera Videos In Pictures

Society & Culture Around Town Book Excerpts Vigyapanti The Dating Story

More Judiciary Education YourTurn Work With Us Campus Voice

Trump either ends Iran conflict quickly, or sky-high energy costs will force him to do so

Trump can waive some environmental rules for gasoline and diesel. These measures would buy time at home. But, internationally, the damage from rising prices would continue.

Despite President Donald Trump’s blustering that America benefits when oil prices surge, crunch time is fast approaching for both the war and the energy market. He either ends the conflict quickly, or sky-high energy costs will force him to do so. The oil market may not have the same fearsome reputation as the bond market but, trust me, it can be equally savage in twisting a politician’s arm.

This week, the White House earned some breathing space thanks to the release of emergency reserves, plus the use of pipelines bypassing the Strait of Hormuz. But the extra time is measured in days, rather than weeks. Certainly, Trump does not have months.

My working assumption is that the oil market will add $3 to $6 a barrel to the headline price for every day — every single day — that the war continues. Monday to Friday, that’s $15-$30. It’s bearable for another week, perhaps two, but any longer and the world will start to incur serious economic damage through soaring energy costs. Short of a very risky — and possibly illegal — intervention in the oil futures market, the White House doesn’t have more meaningful tools to wield to bring energy prices down.

Do I believe the Trump administration is seriously thinking about interfering with the futures market? You bet. Even the Biden administration considered it in 2022 after Russia invaded Ukraine, before realizing it was too hazardous and........

© ThePrint