Middle East Crisis Oil Market

Report: White House expects oil price to reach $200

Trump administration officials are analyzing what a runaway oil price of up to $200 per barrel would mean for the economy. This is reported by Bloomberg sources.

The analysis is part of ongoing assessments in troubled times and does not constitute a forecast, the sources emphasize. The purpose is to ensure preparedness for various outcomes, including a protracted conflict in the Persian Gulf.

Treasury Secretary Scott Bessent is said to have expressed concern even before the war that the conflict could drive up oil prices and dampen growth.

The White House rejects the information and says that it has not specifically analyzed an oil price of $200.

The news agency notes that an oil price of $200 would be a “huge shock” to the world economy. Adjusted for inflation, oil prices have only reached such levels once before – during the 2008 financial crisis.

Oil rises after various signals from Tehran

Oil prices rose on Thursday after Donald Trump warned Iran to “take the negotiations seriously soon”, while once again criticizing NATO for not participating in the conflict.

The president claimed that Iran is actively talking to the US about a deal, something Iranian representatives deny.

“They are ‘begging’ for a deal […] yet they say publicly that they are only ‘considering our proposal’. Wrong!!!”, he writes in capital letters.

Shortly after lunch, fuel oil rises 4 percent to $107 per barrel, while WTI oil rises 3 percent and is trading just above $92.

Iranian Foreign Minister Abbas Araqchi said on Wednesday that Tehran is considering a US proposal for a ceasefire in the Persian Gulf, Reuters reports. At the same time, the country denies that any talks are underway and that there are no intentions of talks to de-escalate the conflict.

– Although the US is clearly looking for a way out, neither Iran nor Israel seem interested in a quick solution, says Sparta Commodities senior analyst Philip Jones-Lux in a comment.