Trump's Oil Catastrophe Prediction May Be Coming True

President Donald Trump predicted an oil catastrophe if the war with Iran didn't end. According to CNN, he said the US would run out of reserves in about four weeks, causing 'bedlam.'

In June, a memorandum of understanding was signed between the US and Iran, but it has since been abandoned.

CNN spoke with David Goldman, a senior reporter for CNN Business, who explained that the strategic reserve of oil maintained by the US is dwindling. However, thanks to a three-week reopening of the Strait of Hormuz, there's currently enough oil stored to supply the country for about 17 weeks.

Another factor contributing to the stability in the market is China's large stockpile of oil reserves, which it has been drawing down to meet its needs. However, estimates suggest that these reserves will only last for three to four months.