Trump calmed oil prices with the promise of peace soon
A day earlier on March 9, the market reacted with a with a rapid rise to reports of explosions and fires at Tehran’s oil infrastructure and the prospect of halting energy exports announced by Qatar. As a result, for the first time since 2022, the price per barrel exceeded the psychological mark of $100.
Euronews, citing experts noted that the market remains extremely sensitive to any news from the conflict zone. Trump has promised to repeatedly intensify strikes on Iran if the country continues to threaten transportation through the Strait of Hormuz, the main global route for oil supplies. Amid their stoppage, 10-12 million barrels of oil per day are withdrawn from the world balance, creating shortages and panic. Nevertheless, as the media report with reference to the French Finance Minister, the G7 countries are not going to unblock emergency reserves yet, hoping to stabilize the market by other measures.
As they do in other regions. For example, South Korea and Thailand have imposed restrictions on diesel and gasoline prices, and some states are trying to cut consumption. In Bangladesh, universities have been closed since Monday, and in the Philippines, many government agencies have switched to a four-day work week.
Donald Trump has said he is not concerned about the “temporary” rise in oil prices. He said it was “a small price to pay for security and peace for the U.S. and the entire planet.”
