U.S. crude futures rose above $100 per barrel yesterday for the first time since mid-2022, when Russia began its full-scale invasion of Ukraine.
The increase was driven by Iraq, Kuwait, and the United Arab Emirates reducing their oil production amid the ongoing U.S.-Iran conflict.
The surge follows Energy Secretary Chris Wright’s assurance yesterday that energy prices would drop once the U.S. removes Iran’s ability to attack tankers in the Strait of Hormuz.
“The plan is to get oil and natural gas and fertilizer and all the products from the Gulf flowing through the straits before too long. We’re massively attriting their ability to strike with missiles and drones, and that rate of attrition will increase in the coming days. So we’ll be cautious, we’ll be careful, but energy will flow soon.” Wright told Fox News.
“We believe this is a small price to pay to get to a world where energy prices will return back to where they were,” Wright said. “Iran will finally be defanged, and now you can see more investment, more free flow of trade, less ability to threaten energy supplies.”
President Trump posted on Truth Social late Sunday: “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. ONLY FOOLS WOULD THINK DIFFERENTLY!”
Last week, U.S. crude oil soared 35.6%, the largest rise in futures contract history.
By CEO NA Editorial Staff
