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President Trump Predicts Precipitous Drop in Oil Prices Following Victory Over Iran

President Trump stated that oil prices would fall "precipitously" once the United States achieves victory over Iran. He predicted that gasoline prices would eventually reach $3 a gallon and potentially drop below $2. However, the administration announced that the conflict remains complex, with renewed Houthi attacks on Saudi Arabia's energy infrastructure causing temporary suspensions in operations. These strikes have impacted production and exports, creating a risk premium in crude markets. Treasury Secretary Scott Bessent also noted that while supply is currently constricted, he predicted oil prices could fall to between $40 and $50 per barrel once the conflict ends and abundant supply hits the market. The administration also highlighted the strategic importance of the Strait of Hormuz. While Iran maintains a grip on this choke point, Gulf nations are constructing alternative pipeline routes to diminish Iran's ability to threaten global oil flows. Treasury Secretary Scott Bessent described the current economic isolation of Iran as one of the most powerful operations in history, combining a blockade and sanctions to asphyxiate the regime.

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