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Trump predicts two-dollar gasoline after election
Trump linked an end to the Iran war and lower gasoline prices to the US midterm elections.
What happened
President Donald Trump predicted the war with Iran would end immediately after the US midterm elections in November and that gasoline could then fall below two dollars a gallon. His comments came as renewed attacks involving ships near the Strait of Hormuz pushed Brent crude above one hundred dollars a barrel.
Numbers
- $2 a gallonTrump's gasoline price forecast — Expected after the election
- $101.21 a barrelBrent's Wednesday closing price — Highest since May
- 3.4%Brent's Wednesday price increase — Driven by supply concerns
Questions
- When is the vote due?
- The US midterm elections are due in early November, and Trump has made consumer energy costs part of the political stakes.
- Why do attacks affect oil prices?
- The Strait of Hormuz carried about a fifth of global oil and gas before the war, making disruption important to traders.
- Why does Trump link the war?
- He stated that Iran wants to influence the vote, while rising gasoline prices and living costs are weighing on his standing.
- What have the exchanges involved?
- Iran announced attacks on ships near Hormuz after the United States sank Iranian oil tankers during the renewed fighting.
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The catch
Trump offered different timetables: immediate after the vote, but possibly longer for oil prices to fall.
The forecast is not an agreement.