On Tuesday, renowned economist Paul Krugman expressed concerns that President Donald Trump’s unpopular conflict with Iran shows “no hint” of ending soon, suggesting that high gas prices may persist in the United States for “quite a few months.”
Krugman, who was awarded the 2008 Nobel Memorial Prize in Economic Sciences, told MS NOW’s Katy Tur, “There’s no relief in sight for people at the gas pump.”
As the president’s chosen conflict continues, the price of oil reached $100 a barrel early Wednesday morning.
Additionally, the national average for fuel prices is climbing, with gas reaching $4.22 per gallon and diesel hitting a record $5.94 per gallon on Wednesday, according to AAA’s figures.
This represents an increase from a year earlier, when gas prices were $3.19 per gallon and diesel was $3.70 per gallon.
With midterm elections approaching, Trump’s camp has sought to mitigate the impact of high fuel prices on the president’s approval ratings.
On Monday, Trump used his Truth Social platform to claim that oil prices will “drop precipitously,” predicting gas prices will first decrease to $3 per gallon and eventually fall below $2 per gallon.
Krugman pointed out that while some oil is being transported through the Strait of Hormuz and other regional routes, the ongoing conflict between Russia and Ukraine is also contributing to high fuel prices.
“In some sense, the world is gradually finding ways to circumvent the blockade of the Strait of Hormuz. But on the other hand, that is becoming increasingly less relevant,” he explained.
“So even if, by some miracle, peace emerged between Donald Trump and the Iranian regime tomorrow, high prices for gasoline and diesel would likely persist for an extended period, as it’s not the sole source of the issue.”
Krugman further commented that the world is “really screwed-up” due to the actions of both Trump and Russian President Vladimir Putin in their respective conflicts.
“For those expecting prices to decrease, if Trump believes they will drop precipitously, there is absolutely no reason to accept that as likely,” he stated.
