Trump says oil prices may rise despite claims of lower inflation at Las Vegas rally
Select a version of the text written from a presumed ideological perspective. This is not the original text, but a hypothetical version — how someone with that viewpoint might have phrased it. Tapping the current version again will return to the original or select cleaned version.
At a Las Vegas event, President Donald Trump claimed the economy was improving while warning that oil prices could increase if the United States escalates its conflict with Iran.
President Donald Trump told a rally in Las Vegas that the United States had inherited historically high inflation but had begun to lower prices. He said the administration had reduced costs and restored the country’s global standing, but added that oil prices could rise again if the United States were forced to intervene in the Strait of Hormuz.
"When oil goes down, and it's going to go down very rapidly and is already happening, we may have to send it up again," Trump said, suggesting that any future military action could affect gasoline prices.
Economists interviewed by AlterNet said the president’s remarks were inconsistent with market expectations. Dr. Ed Gresser, vice president of the Progressive Policy Institute, said that destroying Iranian energy facilities would likely keep crude oil and related product prices high in the medium term, and that any tolls imposed by Iran on the Strait would add risk premiums to shipping costs.
Former Clinton economic adviser Dr. Robert Shapiro added that even without renewed hostilities, a new risk premium and degraded oil infrastructure would keep prices above pre-Trump levels, and that uncertainty about U.S. policy could dampen investment.
White House spokesperson Taylor Rogers responded that U.S. energy dominance reduces reliance on foreign oil flows through the Strait of Hormuz and that recent operations highlighted the importance of domestic energy production. She said several countries are seeking partnerships to enhance energy security with the United States.