News
26/09/09
Trump expects elevated oil prices into November
Washington, 9 September (Argus) — President Donald Trump on Wednesday said that
global oil prices are unlikely to stabilize until after the 3 November midterm
congressional elections. "Right after the election, oil prices are going to be
tumbling downward", Trump told reporters. "It's going to take a little bit
longer than the midterms." Trump, since he started the war against Iran more
than six months ago, has routinely predicted that the conflict would wrap up
quickly because of the supposed destruction of Iran's military potential. But on
Wednesday, Trump laid out a new narrative that dispenses with his earlier claims
of an imminent Iranian collapse, arguing that Tehran's strategy is taking the US
electoral calendar into play. Iran is "desperate to try and affect the election
so that we can get a nice, weak group of people in (Congress), and leave them
alone and let them have their nuclear weapon," Trump said. But, he added: "The
war will end immediately after the election because they can't hold out any
longer." Trump was speaking to reporters before leaving Washington to attend an
unusual, mid-term Republican party convention in Dallas, Texas, where party
members hope to tout efforts to bring down prices for consumers. When the US
joined Israel in attacking Iran on 28 February, Republicans envisioned a
geopolitical victory abroad and cheaper fuel prices at home, a combination that
would put wind at their backs to hold unified control of Congress. But, less
than two months before the elections, polls indicate that Democrats are likely
to wrest control of at least one chamber, if not both. The turnaround in
political fortunes, in part, reflects voter concerns over rising inflation, not
least because of higher fuel prices stemming from the Mideast Gulf supply
disruption. US retail gasoline prices averaged $4.16/USG in the week ended on 7
September, up by around 40pc from late February. "We'll get them down, for
gasoline, below $2 a gallon," Trump said on Wednesday. Trump, who ran for
re-election in 2024 on a platform promising to cut US energy prices by half,
downplayed voters' concerns about rising fuel prices. "I think it's very easy to
explain to Americans," he said. "All you have to do is say, 'Will you let Iran
have a nuclear weapon?' And the answer is 'no.'" The US and Iran are locked in a
struggle for control of the strait of Hormuz, the critical waterway for Mideast
Gulf oil and LNG exports where commercial traffic remains well below pre-war
levels. The US-Iran military confrontation has escalated in recent days, with US
forces destroying eight Iranian tankers in the Mideast Gulf and the Gulf of Oman
since 5 September. The Pentagon cited attempted Iranian missile attacks on US
warships as a justification for destroying Iranian tankers. "You're going to see
a lot more" attacks on Iranian tankers, Trump said. Iran has responded with
attacks on the US military base in Jordan and claimed that it has targeted
multiple vessels in and around the strait of Hormuz. Two tankers were struck by
unknown projectiles in separate attacks within the Mideast Gulf, maritime
security organization UK Maritime Trade Operations reported on Wednesday. Iran's
ability to target US warships and commercial vessels passing through Hormuz
counters recent US claims of having decisively eliminated Tehran's military
threat and of enabling an increase in oil exports through the critical waterway.
Crude futures have settled higher in each of the past six sessions dating back
to 31 August, with October Nymex WTI trading near $96/bl on Wednesday morning.
By Haik Gugarats Send comments and request more information at
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