- US President Trump said oil prices will drop after Iran's nuclear threat ends
- Oil prices surged over 15% amid rising US-Iran tensions and regional strikes
- US officials called the price hike a short-term "fear premium" in markets
US President Donald Trump said rising oil prices are a temporary consequence of the conflict involving Iran, arguing that crude will fall once the threat from Tehran's nuclear programme is removed.
“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” Trump said in a post on Truth Social.
“ONLY FOOLS WOULD THINK DIFFERENTLY!” he added.
The remarks came as oil prices surged sharply on Monday amid escalating tensions across West Asia.
West Texas Intermediate crude rose to $106.56 per barrel, gaining $15.66 or 17.23%, while Brent crude climbed to $106.92, up $14.23 or 15.35%. The rally follows a strong move last week, when crude prices rose amid concerns that attacks on Iranian infrastructure and retaliatory strikes across the region could disrupt energy supplies. WTI had settled at $90.90 per barrel on Friday, while Brent closed at $92.69.
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Officials in Washington have sought to reassure consumers that the rise in fuel prices may not persist.
US Energy Secretary Chris Wright said markets currently reflect a “fear premium”.
“We never know exactly the timeframe of this,” Wright said on CNN's “State of the Union”. “But in the worst case, this is a weeks, this is not a months thing.”
White House press secretary Karoline Leavitt also said the increase in fuel prices reflects a short-term disruption.
“But ultimately taking out the rogue Iranian regime is going to be a good thing for the oil industry,” she said during an appearance on Fox News.
ALSO READ: US-Iran War: Iran Rejects Ceasefire Calls As War With US, Israel Escalates
Iranian officials have warned that continued hostilities could affect the country's oil production and exports.
Iran's parliamentary speaker Mohammad Bagher Ghalibaf said the ongoing war could make it difficult for Iran to produce or sell oil if the conflict continues.
“If the war continues like this, there'll be neither a way to sell oil nor the capacity to produce it,” he said.
The conflict involving Iran, the United States and Israel has entered its tenth day following joint US-Israeli strikes on Iranian military and energy sites.
Iran has responded with attacks targeting Israeli positions and US-linked military assets across the Gulf region.
The escalation has increased concerns about supply disruptions in global energy markets, particularly around the Strait of Hormuz, one of the world's most important routes for oil shipments.
Energy traders are closely monitoring the conflict as further escalation could tighten supply and push crude prices higher.
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