President Donald Trump dismissed analysts’ pessimistic forecasts of a runaway rise in energy prices and said he does not see a serious problem with the current increase in commodity costs caused by the Middle East crisis. In an interview with The New York Post, the head of the White House stressed that a $98 per barrel price is a justified and moderate price to guarantee, over the long term, that Tehran will not acquire nuclear weapons. The US leader expressed confidence in the resilience of the national economy, citing record highs on US stock markets, and urged traders not to succumb to panic.
Although a simultaneous escalation between Israel and Lebanon creates additional risks and threatens to derail the peace process, Trump remains distinctly optimistic. He said he still expects a final agreement between Washington and Iran within a relatively short timeframe. The president recalled that many experts had predicted catastrophic scenarios with oil at about $300–$400 per barrel, yet actual prices have stabilized at much lower levels. Nevertheless, Trump allowed that an effective blockade of the strategically important Strait of Hormuz could last until September 7, extending a period of elevated fuel costs through the entire summer season.
The expert community has treated the president’s upbeat statements with caution. Several industry analysts warn that because of ongoing US military operations in the Middle East, shipments through the Strait of Hormuz may not return to pre-conflict levels in the foreseeable future. Still, Trump insists on a swift diplomatic resolution and says accumulated disputes will be resolved fairly quickly.
