Former White House official issues six-word warning as oil prices soar

A former White House official issued a chilling ultimatum to Donald Trump’s administration as oil prices continue to rise in the US.(Image: Getty Images)

A former White House official issued a chilling ultimatum to Donald Trump’s administration as oil prices continue to rise in the US. Bob McNally, who heads the energy and geopolitical analysis firm Rapidan Energy, said that “the White House should be worried.”

McNally, who served on both the National Security Council and National Economic Council during the George W. Bush administration, told POLITICO that “Geopolitical price spikes pose a bigger risk of recession than inflation in my view.” Earlier this week, Trump had chided his Energy Secretary, Chris Wright, over the rising prices.

“I was going to call and really start screaming at you, “Trump told Wright during a bill signing ceremony on Wednesday. While any ex-president can say that it doesn’t matter what party you are in when oil prices rise, Trump, who campaigned on the promise that he would lower energy prices, might find himself in an especially sticky situation due to his tariffs.

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Bob McNally, who heads the energy and geopolitical analysis firm Rapidan Energy, said that “the White House should be worried.” (Image: Bloomberg via Getty Images)

However, due to renewed conflict between Israel and Iran, prices have started to rise. “Iran knows full well that President Trump is focused on lower energy prices,” Andy Lipow, head of the market analysis firm Lipow Oil Associates, said. According to Lipow, if Iranian forces attack the Strait of Hormuz at the mouth of the Persian Gulf — a major waterway for transporting oil — then it is likely the U.S. would face $100 barrels of oil.

“Actions by Iran that impact Middle Eastern oil supplies, raising gasoline and diesel prices for Americans, are politically damaging to the president,” Lipow added. Unfortunately, there is little that Trump and other White House officials can do.

While any ex-president can say that it doesn’t matter what party you are in when oil prices rise, Trump, who campaigned on the promise that he would lower energy prices, might find himself in an especially sticky situation due to his tariffs. (Image: TNS)

According to the outlet, the only real option open to Trump is to negotiate and use his diplomats to try to persuade Israel and Iran to quell the fighting soon. Trump could also allegedly tell Wright to release oil from the Strategic Petroleum Reserve.

“While oil prices are dictated by supply and demand, the Trump administration is reducing regulatory costs and removing red tape holding back energy production, delivering lower energy costs for the American people,” DOE spokesperson Andrea Woods said.

However, due to renewed conflict between Israel and Iran, prices have started to rise.(Image: AP)

Prior to the attack on Iran, barrels of oil had fallen nearly $20 a barrel below where they were when Trump reentered the White House. The Trump Administration also sustained a big win when Trump enacted his Liberation Day tariffs and further decreased the price of oil.

According to Tamas Varga, an analyst at the brokerage firm PVM Oil Associates, oil prices will go down should the fighting stop. “Given that the situation is fluid it would not be surprising to see prices remain stable ahead of the weekend,” Varga said.

Prior to the attack on Iran, barrels of oil had fallen nearly $20 a barrel below where they were when Trump reentered the White House. (Image: AP)

“Next Monday, however, there is a chance of a significant retracement provided the situation is contained,” they added. ” If there is no tangible supply shock, the current rally will not be maintained.”

Another analyst stated that Trump has some wiggle room before he fails to make good on his campaign promise. “Of course, Trump didn’t campaign on keeping energy costs the same. He campaigned on bringing them down,” said Kevin Book, director at analyst firm ClearView Energy.

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