US Attacks Iran, Now Panics Facing $200 Oil Scenario

The impact of the war in the Middle East has now rebounded to strike the United States. Oil prices have surged sharply, global energy supplies have been shaken, and the White House is forced to confront a crisis triggered by its own military escalation against Iran.

Since the attack launched by the United States alongside Israel on Iranian territory, the conflict has rapidly spiralled out of control. Tehran has responded by disrupting energy traffic in the Strait of Hormuz, a vital route through which around 20 per cent of the world’s daily oil and gas supplies pass. As a result, global energy distribution has been stalled, and prices have skyrocketed.

Within the White House, concerns are mounting. Officials are now discussing the worst-case scenario: oil prices could breach $150 or even reach $200 per barrel. This figure is far above normal levels and could potentially rock the global economy, as reported by Politico.

The previous Trump administration had dismissed this conflict as a short war with no long-term impact. However, the reality on the ground tells a different story. The surge in energy prices has now become a “boomerang” directly felt by American society.

Domestic petrol prices have reached an average of $4 per gallon. The burden of transportation costs has increased, pushing up the prices of goods and intensifying economic pressures, especially for low-income groups. Officials have even acknowledged that this situation could become an “indirect tax” draining consumer purchasing power.

This situation is further exacerbated by disruptions to the global supply chain. Many energy shipments are delayed, while oil reserves that were previously flowing to the market are now starting to deplete. Analysts warn that the true wave of impacts will only be felt in the coming weeks, including in the United States.

On a global level, the effects are broader. A United Nations Development Programme report states that this conflict could wipe out hundreds of billions of dollars in economic growth in the Arab region, increase unemployment, and push millions into poverty.

Although the United States is one of the world’s largest energy producers, the country is not immune to global market volatility. Rising prices for diesel, jet fuel, and logistics costs are certain to spread to various economic sectors.

Now, the US government is seeking various ways to suppress energy prices, including considering the use of emergency powers. However, these measures are deemed too late, given that the root of the problem stems from the escalating conflict that shows no signs of abating.