Axios: Get ready for $200 oil

Get ready for $200 oil
 
Illustration: Annelise Capossela/Axios

Oil prices are popping after President Trump failed to offer a clear plan for reopening the Strait of Hormuz during his Iran speech last night.

Trump called on other countries to “take the lead in protecting the oil that they so desperately depend on.

Officials from more than 40 countries — though not the U.S. — are meeting today to discuss opening Hormuz. 

Oil could surge to an unprecedented $200/barrel if Hormuz stays closed, Axios’ Amy Harder reports.

Brent crude futures are at about $107/barrel as of midafternoon, up 6.7% from yesterday.A line chart that tracks Brent crude oil prices hourly from March 2 to April 2, 2026, in ET. Prices spiked from below $80 to $116 on March 8. Since then, prices have generally been elevating, hitting $107 on April 2.Data: Financial Modeling Prep; Chart: Erin Davis/Axios 

Analysts at Macquarie, a financial services company, say oil could reach $200 if the Iran war drags into June.

Trump said last night that the U.S. campaign will last another two to three weeks. He said after the war, oil will start “flowing and the gas prices will rapidly come back down. Stock prices will rapidly go back up.

Jason Bordoff, founding executive director of Columbia University’s Center on Global Energy Policy, tells Axios: “There is no policy option to prevent oil prices from marching up toward $200 a barrel if the Strait of Hormuz remains closed.” 

$200 oil could be catastrophic for our globalized economy:

Gas and jet fuel prices would skyrocket, prompting painful changes in global energy consumption. Some countries are already rationing fuel or imposing price controls.

Food prices would rocket up as fertilizer gets more expensive.

Prices for foreign-made consumer goods — electronics, clothing, anything else imported — would also climb.Go deeper.
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About michelleclarke2015

Life event that changes all: Horse riding accident in Zimbabwe in 1993, a fractured skull et al including bipolar anxiety, chronic fatigue …. co-morbidities (Nietzche 'He who has the reason why can deal with any how' details my health history from 1993 to date). 17th 2017 August operation for breast cancer (no indications just an appointment came from BreastCheck through the Post). Trinity College Dublin Business Economics and Social Studies (but no degree) 1997-2003; UCD 1997/1998 night classes) essays, projects, writings. Trinity Horizon Programme 1997/98 (Centre for Women Studies Trinity College Dublin/St. Patrick's Foundation (Professor McKeon) EU Horizon funded: research study of 15 women (I was one of this group and it became the cornerstone of my journey to now 2017) over 9 mth period diagnosed with depression and their reintegration into society, with special emphasis on work, arts, further education; Notes from time at Trinity Horizon Project 1997/98; Articles written for Irishhealth.com 2003/2004; St Patricks Foundation monthly lecture notes for a specific period in time; Selection of Poetry including poems written by people I know; Quotations 1998-2017; other writings mainly with theme of social justice under the heading Citizen Journalism Ireland. Letters written to friends about life in Zimbabwe; Family history including Michael Comyn KC, my grandfather, my grandmother's family, the O'Donnellan ffrench Blake-Forsters; Moral wrong: An acrimonious divorce but the real injustice was the Catholic Church granting an annulment – you can read it and make your own judgment, I have mine. Topics I have written about include annual Brain Awareness week, Mashonaland Irish Associataion in Zimbabwe, Suicide (a life sentence to those left behind); Nostalgia: Tara Hill, Co. Meath.
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