economy
Why Trump Didn’t Predict the Gas-Price Spike
The president doesn’t understand that markets are global.
TL;DR
- President Trump assured that the Strait of Hormuz problem was under control, claiming destruction of mine-laying ships.
- Gasoline prices surpassed $4 per gallon shortly after Iran began impeding the waterway.
- Trump's core mistake was refusing to acknowledge the U.S. economy's integration into the global economy.
- He wrongly believed that minimal U.S. oil imports from the Strait meant no impact on American consumers.
- Global energy markets equalize prices, meaning disruptions in one region affect worldwide prices, including for U.S. exports.
- Trump's desire for economic isolationism contrasts with his push for other countries to buy U.S. oil.
- His lack of understanding of global energy markets may have contributed to his decision to attack Iran, a move other presidents avoided.