Trump downplays oil spike, says 'short-term' surge necessary to stop Iran’s nuclear programme

US President Donald Trump.

With tensions escalating in West Asia amid the Israel-Iran war and leading to a surge in oil prices, US President Donald Trump said the "short-term" spike is worth the cost if it eliminates Tehran's nuclear threat.

In a post on Truth Social, Trump said the short-term surge in oil prices will drop rapidly 'when the destruction of the Iran nuclear threat is over'. "...a very small price to pay for U.S.A., and world, safety and peace. ONLY FOOLS WOULD THINK DIFFERENTLY!President DJT," said the US President.

The US President's statement came a day after Israel attacked oil storage facilities in Iran, in what it suspected were being used as military infrastucture.

As of early Monday,  oil prices surged about 20% in early trade, hitting their highest since July 2022, as the expanding US-Israeli war with Iran fuelled fears of tighter supply and prolonged disruptions to shipments through the Strait of Hormuz.

Investors fear that the conflict with Iran could lead to prolonged disruptions in global oil supply. Oil and gasoline prices have surged as the confrontation has drawn in several countries across West Asia and the Gulf, with attacks on regional refineries further intensifying concerns about energy supply.

The surging oil prices have weighed heavily on stocks in recent days, with traders fearing that a prolonged spike in fuel prices could lead to another spike in inflation and hurt the economy.

Quoting CNN Business, ANI reported that US oil futures rose 18 per cent to about USD 108 a barrel-- their highest level since July 19, 2022, while Brent futures, the global benchmark, increased to 16 per cent, thus nearing USD 108 a barrel.

In the wake of the US military strikes on Iran, the average price of gasoline in America touched $3.45 a gallon on Sunday, up 16% from the week prior, according to AAA as per CNN Business.

It highlighted that a prolonged spike in oil and gas prices could aggravate affordability in the United States, thereby putting Trump and his party in a precarious political position ahead of the midterm elections this year.