President Trump’s comments to reporters on Tuesday that he expects the U.S. to end its war with Iran in two or three weeks is buoying investors by easing global oil prices and boosting stocks. Yet such optimism is certain to fade quickly unless Iran agrees to reopen the Strait of Hormuz soon, according to economists, who warn that crude prices could continue to soar even if the Trump administration moves to wind down military operations in the region.
“The scary scenarios are, unfortunately, extremely plausible. It’s not at all hard to tell a $150 [per barrel] story, and it’s not crazy to go to $200,” Nobel Prize-winning economist Paul Krugman told CBS News.
U.S. gasoline prices, which are tied to the global price of oil, would likely keep climbing above $4 if the strait remains closed, according to Bernard Yaros, lead U.S. economist at Oxford Economics. The average cost of gas rose on Wednesday to $4.06 a gallon, its highest level since August 2022.
Source: cbsnews.com/news
