Oil prices surged past $100 per barrel on Sunday, the first time since Russia’s 2022 invasion of Ukraine.
President Donald Trump called the rising costs a “very small price to pay” in a Truth Social post.
“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!” he wrote.
Futures soar on Hormuz threats
Oil futures and gasoline prices skyrocketed as traders feared the Iran war would restrict global oil flows, especially through the Strait of Hormuz handling 20% of world supply.
Iran threatened attacks on tankers passing the strait.
US oil futures jumped 18% to $108 a barrel, peaking at $110 Sunday evening—their highest since July 2022.
Benchmarks and dire forecasts
Brent futures rose 16% to near $108 a barrel.
Kpler analyst Homayoun Falakshahi warned oil could hit $150 by March’s end without resumed strait traffic.
Stocks suffered, with Dow futures down over 800 points (1.7%) and S&P 500, Nasdaq futures off 1.6%.
Pump pain intensifies
US gasoline averaged $3.45 a gallon Sunday, up 16% week-over-week per AAA, sparked by February 28 Iran strikes.
Prolonged rises could strain affordability, pressuring Trump and Republicans pre-midterms.
Administration’s mitigation steps
The Trump administration offered tanker insurance after maritime insurers balked at regional risks.
It promised naval escorts, but details lag and shippers avoid the area.
Shipping experts noted the plan helps but needs de-escalation for market calm, per Falakshahi.
Iran vows retaliation phase
A senior Iranian official declared a “new phase” post-Israel’s oil storage strikes, eyeing energy infrastructure hits.
“Iran will not give up control of the Strait of Hormuz until it achieves its desired results,” the official said.
Producers cut output amid full storage.
Energy Secretary Chris Wright told CNN’s “State of the Union” the US avoids striking Iranian oil sites, though sanctions limit sales to China.
