A sustained rise in the price of crude oil, which jumped sharply after Israel attacked Iran, could hurt consumers and President Trump’s efforts to bring down energy costs.
Oil prices, which surged after Israel attacked Iran early Friday, could stay high as long as tensions are elevated in the Middle East.
Higher oil prices could eventually lead to more expensive gasoline and diesel, hurting consumers and businesses and throw a wrench into the Trump administration’s goal of lowering energy costs to keep inflation in check.
The benchmark U.S. crude oil price was about $72 a barrel late Friday morning in the United States, up about 6 percent. Prices briefly topped $77 a barrel shortly after the attack began.
Price of Oil
Notes: Data shows future contract prices for West Texas Intermediate light sweet crude oil. Data delayed at least 15 minutes. Source: FactSet By The New York Times
Where oil prices go from here depends on how Iran responds to the Israeli attacks, analysts said. Prices could climb further if Iran attacks energy infrastructure or U.S. bases in the region. But if it retaliates in a more limited fashion, oil prices most likely would fall in the coming weeks.
Either way, U.S. oil companies and big producers in the Middle East like Saudi Arabia are not likely to ramp up production quickly, said Robert McNally, who is president of the Washington research firm Rapidan Energy Group and was an energy adviser to President George W. Bush.
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