Sabotaged oil tankers in the Strait of Hormuz, a downed drone and now threats of new economic sanctions have heightened the tension between the U.S. and Iran. And that tension has economic effects.
Matt Smith, director of commodity research at ClipperData, says what’s happening between the U.S. and Iran is affecting oil prices.
“We saw them move, actually, $20 higher by April,” Smith says. “And then, really, since the beginning of June, we’ve really seen prices picking up.”
Smith says President Donald Trump is more likely to impose economic sanctions, even though some members of his administration are pushing for military action.
“It seems probably best, at least for the people of Iran, that we see these economic sanctions continue, as opposed to this turning out to some full-blown war,” Smith says.
What you’ll hear in this segment:
– How the conflict between the U.S and Iran affects Texas oil companies
– How this conflict is different from ones in the past
– How it affects consumers
Written by Geronimo Perez.