Washington – American Energy Minister Chris Wright stated on Thursday. He said short-term pain from rising gas prices is necessary. This pain addresses a long-term problem. This problem involves Iran’s threats in the region.
During an interview with CNN, Wright explained. “We are weakening Iran’s ability to threaten US forces”. “We are also weakening their allies, neighbors, and global energy markets”. “Therefore, some temporary suffering is necessary”. “It will solve a long-term problem”. “This is bold leadership from President Trump”. “It is what the world needs”.
The Minister added. “We focus on the military operation and solving the problem”. “I do not speculate on short-term trades”. “These are affected more by psychological factors than oil flows”. He noted the United States remains the world’s largest oil producer. It holds this position by a large margin.
Jay Hatfield, CEO and founder of Infrastructure Capital Advisors, pointed out. Oil is traded on a global market. Other crude oil sources exist worldwide. Therefore, the price per barrel is unlikely to exceed $150. This holds true even if the Strait of Hormuz remains closed for an extended period. He added that this price would surpass the historical high recorded in 2008. That high was a contributing factor to the global financial crisis.
In contrast, Ibrahim Dhou al-Fiqari, spokesperson for Iran’s Revolutionary Guard, told Reuters yesterday. The world should be prepared for oil prices to reach $200 per barrel. This would double its current price. Wright responded that this scenario is “unlikely”. However, he declined to predict the extent of future oil and gas price increases.