economy
Trump's Iran war speech paints a grim picture for oil markets with more than 600 million barrels at risk
Oil prices are surging as the market prepares for a longer U.S. war with Iran after President Donald Trump's national address.
TL;DR
- Oil prices surged over 10% after President Trump's speech indicated a prolonged war with Iran.
- The conflict is expected to last at least into deep April, potentially leading to a loss of nearly 1 billion barrels of crude oil and refined products.
- Trump stated that countries dependent on oil passing through the Strait of Hormuz must take responsibility for its protection.
- Analysts predict potential global fuel shortages, starting with jet fuel, then diesel, and gasoline, with South Asia and Southeast Asia being affected first.
- U.S. retail gasoline prices could jump to $4.25-$4.45 per gallon and diesel prices to $5.80-$6.05 per gallon in the next two weeks.