Oil prices to fall sharply after US’s victory over Iran: Trump claims
Washington: US President Donald Trump has claimed that a sharp fall in global oil prices will happen once the United States emerges victorious from its war with Iran, claiming that crude prices in the US could initially fall to $3 a gallon before dropping below $2.
In a post on Truth Social, Trump said oil prices would decline significantly after the conflict with Iran ends, just as the prices of other commodities fall. He suggested that the price drop would occur rapidly and reiterated that Iran would never be allowed to develop a nuclear weapon. He ended the post with his signature “Make America Great Again” slogan.
Trump’s prediction comes as tensions around the Strait of Hormuz continue to threaten global energy supplies. Iran has warned that any attack on oil tankers would trigger strong retaliation against US oil and gas companies operating in the Gulf region.
Tehran has also said it would soon announce a shipping route and controlled zone in the Strait of Hormuz following an understanding reached with Oman. Qatar has separately warned that a prolonged disruption to the strategic waterway could plunge the global energy and economic systems into a severe crisis.
The tensions have already sent oil prices soaring, with crude in global markets rising to around $98 a barrel amid fears of further disruption to supplies through the vital maritime passage.
The US State Department has also said Washington will continue taking decisive measures against what it described as Iran’s attempts to disrupt shipping through the Strait of Hormuz and use the global economy as leverage.
The developments have intensified uncertainty over energy prices even as Trump forecasts a dramatic decline following an eventual US victory.