Prospect of Iran Conflict is Boon for U.S. Oil Producers

The Trump administration’s unfortunate stress relationship with Iran has the unintended effect of benefiting the U.S. economy by driving up the price per barrel of oil. Because the United States is the largest producer of oil on earth and Iran in fourth place sanctions on the fourth place guy tighten oil supply a trifle and with the restricted supply drive up demand. Luckily for the oil market whenever Iran sends missiles to Iraq or attacks ships or Saudi oil facilities there is a temporary increase in the price of oil as investors fear, or rather, bank on, the possibility of war.                   

When war in the Persian Gulf and Middle East becomes a serious threat or actually occurs that is very good for U.S. oil producers. With an actual conflict with Iran the price of oil could double. Full disclosure- I have no shares of any any oil producers or suppliers.

President Trump’s Iran issues actually benefit the U.S. economy.





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