Justin Wolfers Says Trouble in Iran Means 'Turmoil' in Energy Markets: 'Expect Higher Gas Prices'
Economist Justin Wolfers warned Tuesday that U.S. military strikes on Iran could push gasoline prices higher by disrupting global energy markets.
Wolfers Warns Iran Turmoil Could Lift Gas Prices
Trouble in Iran would lead to “turmoil” in global energy markets, resulting in elevated gas prices, Wolfers, a University of Michigan economist, said in a post on X.
U.S. military strikes on Iranian targets followed attacks on commercial vessels transiting the Strait of Hormuz, raising fresh concerns over disruptions to global oil supplies.
Crude oil traded above $72 a barrel on Wednesday and was up more than 5% for the week at the time of writing.
The renewed conflict has put the interim U.S.-Iran peace agreement at risk.
Oil ETFs Back In Focus
The latest attacks have put oil ETFs back in focus, as the funds offer exposure to crude oil prices and the broader energy sector.
The United States Oil Fund (NYSE:USO), which tracks West Texas Intermediate crude oil futures, has $1.04 billion in assets under management and charges an expense ratio of 0.60%. Shares have gained 57.95% year-to-date and 41.53% over the past year.
ProShares UltraShort Bloomberg Crude Oil (NYSE:SCO), which also tracks the daily performance of WTI crude, has $830.08 million in assets and charges an expense ratio of 0.95%. It has fallen 57.66% year-to-date and 49.85% over the past year.
ProShares Ultra Bloomberg Crude Oil (NYSE:UCO) has $315.52 million in assets and charges an expense ratio of 0.95%. It has gained 79.61% year-to-date and 42.08% over the past year.
Other oil ETFs include the Invesco DB Oil Fund (NYSE:DBO), with $208.97 million in assets under management and a 0.75% expense ratio, and the ProShares K-1 Free Crude Oil Strategy ETF (NYSE:OILK), with $85.48 million in assets under management and a 0.73% expense ratio.
Energy Stocks Stay In Focus
Energy stocks also moved higher, with Exxon Mobil Corp (NYSE:XOM), Battalion Oil Corp (NYSEAMERICAN: BATL) and Occidental Petroleum Corp (NYSE:OXY) extending gains in after-hours trading as crude prices climbed.
Price Action: Shares of United States Oil Fund closed 4.38% on Tuesday at $108.92 and rose 0.51% in extended trading.
Benzinga Edge Rankings indicate USO has a Momentum score in the 73rd percentile, with a negative short and medium-term price trend but a positive long-term trend.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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