Trump's Iran War Quagmire: Oil Prices Soar Amid Refining Capacity Shortage
Donald Trump's Iran war has become a quagmire due to his personal vanity. Despite losing the initial decapitation strike and failing to keep the Strait of Hormuz open, Trump continues to claim victory.
The economic fallout from the war is more severe than initially thought. The price of oil has risen back to around $100 a barrel, with some analysts predicting it could be even higher due to the lack of refining capacity.
Crude oil prices are lower than expected because refineries can't process it into usable fuels like gasoline and diesel. This means that end-users are facing much higher prices for petroleum products, equivalent to an additional $40 per barrel.
The 'crack spread', the difference between crude oil and refined product prices, has exploded from around $25 a barrel before the war to over $65 now.
This surge in energy prices will likely lead to rising inflation rates and higher interest rates, intensifying the squeeze on families and businesses.