Trump's About-Face on Low Oil Prices? Shifting Stance 180 Degrees: High Oil Prices Let America Rake It In!

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Source: Cailian Press

Cailian Press, March 13 — (Editor: Bian Chun) Since President Trump took office, he has been loudly promoting low oil prices and claiming credit for the decline. However, as the US-Iran conflict significantly pushed up oil prices, Trump’s stance has done a 180-degree turn: he now portrays high oil prices as a good thing.

This shift in attitude comes as Trump’s team struggles to come up with a clear plan to reopen the crucial Strait of Hormuz, allowing ships loaded with oil and natural gas to pass through the Gulf region freely.

“America is currently the world’s largest oil producer, so when oil prices rise, we can make a big profit,” Trump posted Thursday on his self-created social media platform, Truth Social.

He did not specify who “we” refers to. But major US oil companies are benefiting from the rising oil prices triggered by the Iran conflict, while ordinary citizens face higher fuel costs.

Trump’s comments have drawn criticism from some members of Congress, who say he only cares about the wealthy, not ordinary workers.

Last month, in his State of the Union address, Trump boasted that gasoline was $2.30 per gallon. According to the American Automobile Association (AAA), since then, gasoline prices have surged over 50%, with the national average reaching $3.60 per gallon.

The US midterm elections will be held in November. If oil prices remain high, it could hurt the Republican Party’s prospects, including Trump.

Goldman Sachs on Thursday said that based on its forecasts and historical experience, rising oil prices will lead to higher inflation, slower economic growth, and increased unemployment.

However, Trump has remained calm about the surge in oil prices. He has repeatedly said that once the war ends, oil prices will quickly fall.

Initially, Trump downplayed the need to use the Strategic Petroleum Reserve, but this Wednesday, he announced that the US would coordinate with other countries to release oil reserves to lower prices. Subsequently, the US government announced it would release 172 million barrels from the Strategic Petroleum Reserve. Coordinated releases by multiple countries are unlikely to significantly lower oil prices; their main role is to stabilize the market.

Since the outbreak of the US-Iran conflict, international oil prices have surged sharply due to the near-closure of the vital energy transit route, the Strait of Hormuz. With Gulf countries reducing production, the situation in the Strait, comments from Trump regarding the timeline of the conflict, and coordinated releases of oil reserves by multiple nations, international oil prices have recently been highly volatile. Prices approached $120 per barrel on Monday, then fell sharply and are now hovering around $100.

Reports indicate that the Trump administration is considering a temporary exemption from the century-old Jones Act to ensure the free transportation of energy and agricultural products between US ports. White House Press Secretary Karine Jean-Pierre said Thursday that this move aims to address supply disruptions caused by the Iran situation.

The Jones Act is a colloquial term for the core provisions of the Merchant Marine Act of 1920. It requires that maritime trade between US ports use ships built in the US, owned by US companies, and operated by US crews.