Iran deal will push oil prices lower: Trump

Evian, June 17 (SocialNews.XYZ) President Donald Trump on Wednesday said the agreement reached with Iran would help drive oil prices lower and strengthen the global economy by ensuring the reopening of the Strait of Hormuz, one of the world's most important energy shipping routes.

At a press conference after the G7 summit in France, Trump said energy markets had reacted positively to the agreement and the easing of tensions in the Gulf.

“Oil prices are plummeting,” Trump said.

The President argued that fears of a prolonged conflict had faded after the agreement was announced, reducing concerns about disruptions to global oil supplies.

“The oil never went to $350 a barrel,” Trump said. “It went to $115, $120.”

Trump said the reopening of the Strait of Hormuz would help stabilise global energy markets and prevent shortages.

“If we keep bombing, those ships won't be going,” he said, referring to commercial traffic through the strategic waterway.

Trump said lower oil prices would eventually translate into lower costs for consumers and businesses.

“When oil prices come down, oil is the biggest thing,” he said.

The President predicted further declines in fuel costs in the United States.

“We're hitting in the threes now for gasoline, and that'll come down a lot lower,” Trump said.

He also linked lower energy costs to broader economic gains, arguing that cheaper fuel would reduce operating expenses across industries and help bring down inflation.

The comments come as major oil-importing countries, including India, closely monitor developments in the Gulf. India imports the bulk of its crude oil requirements, and sustained stability in the Strait of Hormuz is viewed as critical for energy security and inflation management.

Source: IANS