Oil Price Surge Threatens Midterm Elections as Crude Heads Towards $100
Oil prices have broken above $90 per barrel, a development that could make voting in November's midterm elections more expensive for Americans. This prediction comes from veteran investor Peter Schiff, who noted that the price of crude is surging due to escalating US-Iran strikes and is poised to top $100 a barrel soon.
According to Schiff, the rising oil prices will push up both the Consumer Price Index (CPI) and bond yields, making it more costly for voters heading to the polls. He also warned that if the Federal Reserve hikes interest rates in September, 'the politics get even worse'.
Crude oil prices were trading at $90.558 per barrel at the time of writing, while Brent crude was up 0.67% to $95.288 per barrel. This comes as August's national average gas price hit a record $4.056 a gallon, with Americans paying $10.51 billion more for gas last month than a year earlier.
Ross Gerber, co-founder of Gerber Kawasaki Wealth Management, echoed Schiff's concern, saying rising oil prices and interest rates could weigh on stocks just as the Fed decision looms. 'Fed is now in play,' he said, adding that 'it's not a good set up for the fall.'