Trump Ties Gas Prices Directly to Iran Strike Decision
President Donald Trump has warned that gas prices could rise again, but only if America wages another military strike on Iran, he explained to Punchbowl News in an exclusive interview.
When asked to explain comments he’d made to a pro-Trump crowd in Las Vegas last week, in which he suggested that cooling tensions with Iran would cause prices to fall, while also suggesting prices could rise “temporarily,” Trump stated that he would only order another attack on Iran if circumstances dictated so, which would raise gas prices.
Trump was also asked if he thought gas prices could rise due to his comments, which he said would only be the case if America had to attack Iran again.
Trump did not elaborate on what circumstances would prompt him to take military action again, and what he expected another strike on Iran to entail. He did state that he thought Iranian leaders wanted to negotiate in order to prevent another attack, saying that they were “very eager” to do so.
Gas Prices Already Coming Down
Trump made these comments as gas prices continued their steady descent, due in part to market forces, but also due to investors’ hopes that the Strait of Hormuz, which had been temporarily blocked by the recent conflict, will see normal traffic resume soon.
The national average price per gallon of regular gasoline fell three cents on Monday (August 6) to $4.06, with half of all U.S. states now averaging below $4 per gallon, according to AAA.
“The normal pattern this time of year is for gas prices to fall as summer driving slows and students return to school,” the organization’s Petroleum Analyst noted.
Crude prices followed the same pattern, with Brent crude futures and U.S. West Texas Intermediate crude futures both falling by around 0.9 percent early on Friday (August 3).
“Despite the benign pricing environment for crude oil, we are still not out of the woods for a quick resolution of the current geopolitical issues affecting the Strait of Hormuz,” ING analysts wrote in a note to clients on Monday (August 6). “Market participants are growing increasingly aware that a deal to keep the Strait of Hormuz open to free trade is not necessarily a done deal.”
Iran and Oman Moving Toward a Temporary Deal?
Meanwhile, Iran and Oman appear to be close to an agreement on the temporary routes for ships passing through the Strait of Hormuz.
An Iranian foreign ministry spokesperson said Iranian and Omani ministers were finalizing a joint statement on the new routes after “consultations” to “formulate a joint document” following their agreement on the proposed route. Their plan would see tankers using a shipping lane near Iran’s Larak island and another one near the Omani coast replaced by a new shipping corridor, partially on Iranian and partially on Omani waters, that would initially be in place for two to four months.
The Iranian Deputy Foreign Minister said that “understandings in principle” had been reached on all issues, including the new route, and that the deal would initially be a temporary measure, but could continue for a longer period if needed.
“An agreement between Oman and Iran would not necessarily reopen the Strait of Hormuz to all traffic,” he said, noting that it would depend on Iran’s leadership and “political will.” This, he added, would be conditional upon Washington lifting sanctions, unfreezing Iranian assets, lifting the naval blockade, and ending the broader confrontation.
What Does This Mean For America?
For now, Americans can rest assured that as long as tensions with Iran are not inflamed anew, gas prices will steadily come down, but there is always the possibility of fresh hostilities between the two nations, which would cause prices to rise again.
This article originally appeared on The Epoch Times. See the full article here.
