US President Donald Trump has predicted a sharp drop in oil and gasoline prices after what he described as a US victory over Iran.
Trump made the claim in a post on Truth Social. He said gasoline prices could fall to around $3 per gallon after the conflict.
He then predicted that prices could drop below $2 per gallon. Trump also said the decline would happen quickly.
Trump again said Iran would not be allowed to obtain nuclear weapons.
Oil prices move higher amid supply fears
Trump’s prediction comes as global oil prices are moving in the opposite direction.
Brent crude futures initially rose 34 cents, or 0.35%, to $97.34 per barrel. US West Texas Intermediate crude also rose, reaching $92.63 per barrel.
Oil prices later climbed further as markets assessed the risk of a prolonged conflict in the Middle East.
The ongoing conflict has disrupted oil shipments through key waterways. Reuters reported that Middle Eastern oil shipments had fallen sharply from pre-conflict levels, although some supplies continued to reach global markets.
Strait of Hormuz remains a major concern
The Strait of Hormuz remains central to the energy market risks.
The waterway carries a major share of global oil and gas shipments. Any prolonged disruption could put further pressure on crude prices.
Iran has also threatened new restrictions around the strategic waterway. These developments have added to concerns about future energy supplies.
Trump links lower prices to victory
Trump has repeatedly linked an end to the Iran conflict with lower energy costs.
However, current market conditions remain uncertain. Oil prices continue to reflect concerns about supply disruptions and the security of shipping routes.
Whether gasoline prices can fall to Trump’s predicted levels will depend on the duration of the conflict, global oil supplies and demand.
For now, markets remain focused on developments in the Middle East and their impact on energy flows.
