WASHINGTON, D.C. – Increased fighting between the US and Iran along with prolonged disruptions to oil supply has pushed up global oil prices. On Wednesday it reached $100 per barrel. It’s the highest levels since July. Petroleum analysts said it’s unlikely prices will go down unless the fighting ends.
Brent Crude, the global oil benchmark, rose 2.8 percent on Wednesday. This after more reports of fighting in the Middle East that include the US striking Iranian oil tankers and earlier, the Houthis attacking Saudi Arabia.
Patrick De Haan, the head of petroleum analysis with GasBuddy, said it’s been a record-setting last few days for gas and diesel prices here at home.
“Labor Day was the most expensive Labor Day for gasoline prices averaging nationally of any year,” said De Haan. “The national average was above four dollars, it was on Labor Day beating 2012’s national average of 3.83 a gallon on Labor Day. Over the weekend not to be outdone, diesel prices set a new all-time record high. Exceeding 2022’s peak surpassing a 5.82 a gallon.”
The increase in diesel means higher fuel costs for shipping companies and trucking, which could mean higher costs across the supply chain. Prices have been a rollercoaster this year as the market reacts to increased tensions or talks of de-escalations in conflicts.
On Wednesday the President was asked about the high oil prices and how he will explain to Americans when prices will come down:
“All you have to do is say, will you let Iran have a nuclear weapon? And the answer is no,” said the President. “But right after the election, oil prices are going to be tumbling downward. They’re going to be tumbling down, and we’ll get them down, I think for gasoline, we’ll get them below $2 a gallon.”
Reporter: “But not until after the midterm?”
Trump: “I think it’s going to take a little bit longer than the midterms.”
Economists said that surging energy prices could keep inflation up, which could complicate interest rate decisions at the Central Bank.
