Top Trump adviser Hassett: oil prices set to fall

The recent surge in oil prices driven by the conflict in the Middle East is likely to be temporary, the White House said, according to the Financial Times.

US President Donald Trump’s economic adviser Kevin Hassett said the increase represented a short-term shock, pointing to futures markets that are already pricing in a decline and a return to more stable levels by the summer or autumn.

Some economists support this view, noting that oil prices have often fallen after wartime disruptions. However, they also warn that developments in the strategic Strait of Hormuz, through which a significant share of global supply passes, remain a key risk.

US petrol prices have already risen noticeably, while crude oil prices have surged, with short-term contracts reaching their highest levels since 2008.

(pir)