The White House denies concerns and forecasts from the president’s team
The team of U.S. leader Donald Trump is analyzing the consequences of a sharp rise in oil prices to $200 per barrel. This scenario is being considered against the backdrop of escalating war risks.
This was reported by RBC-Ukraine, citing Bloomberg.
Also read: Oil prices hit a record high following the start of the war in Iran
The administration of U.S. President Donald Trump is studying the potential consequences of a sharp increase in oil prices to $200 per barrel.
According to sources from the agency, officials are analyzing how such a price shock could impact the U.S. economy and global markets. This indicates that Washington is preparing for even the most negative scenarios.
Why the $200 per barrel scenario is being considered
The main reason for this is the war in Iran, the risks of further escalation, and threats to oil supplies. In particular, the situation in the Strait of Hormuz remains a key factor, through which a significant portion of global energy resource supplies passes.
Experts warn that even prices at the level of $170 per barrel would already be a serious blow to the global economy, while $200 could lead to widespread consequences.
Consequences for the economy
A sharp rise in oil prices could:
- accelerate inflation;
- increase prices for fuel, logistics, and goods;
- trigger an economic slowdown or even a recession.
Since oil is a fundamental resource for most industries, its price increase automatically raises costs in almost all sectors of the economy.
How realistic is such a scenario
At the same time, officials within the U.S. administration have publicly stated that a price of $200 per barrel seems unlikely, although it cannot be completely ruled out amid geopolitical tensions.
Currently, Washington continues to seek ways to curb prices, including through the use of strategic reserves and other market influence tools.
As is known, immediately after the start of the U.S. and Israeli operation against Iran, Tehran closed the Strait of Hormuz, which is crucial for global oil supplies.
This caused global oil and fuel prices to spike accordingly.
