Trump Says Oil Prices Will Drop 'Precipitously' Once the US Wins Iran War, As Gas Hits Record Labor Day High
President Donald Trump said Monday that oil prices will fall “precipitously” once the U.S. wins its war with Iran, predicting gas will first drop to $3 a gallon before ultimately falling below $2.
‘It Will All Happen Quickly’
“Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran,” Trump said in a post on Truth Social.
“Three Dollars a gallon, but ultimately, below Two Dollars a gallon. It will all happen quickly, and Iran will never have a Nuclear Weapon.”
Gas Prices at Labor Day High
Gas prices hit their highest Labor Day level on record, with AAA putting the national average at $4.15 a gallon Monday, up from roughly $3.20 a year earlier and well above the previous Labor Day high of $3.82 set in 2012.
Diesel was hit a record of $5.9015.
Energy Secretary Chris Wright declined to guarantee prices would keep falling when pressed on CNN Sunday, saying only that gasoline futures suggest prices are “more likely to go down than go up.”
Treasury Secretary Scott Bessent predicted oil could fall to $40 to $50 a barrel once the war ends, citing a coming surge in supply, though investor Peter Schiff dismissed the claims saying, “don’t believe anything this guy says. I don’t think he believes what he is saying either.”
The War Shows No Clear Sign Of Ending
On Monday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that American oil and gas companies operating across the region remain exposed, writing on X, “strike our assets and you get struck.”
On Saturday, Sen. Bernie Sanders (I-Vt.) called Trump’s Iran war “illegal and disastrous,” blaming it for record-high Labor Day gas prices. Sen. Elizabeth Warren (D-Mass.) said ending the war in Iran would lower gas prices.
At the time of writing, Brent Crude traded near $97.0.5, up 0.05% a barrel, and WTI Crude was up 1.06% at $92.45 per barrel.
Price Action: On Friday, United States Brent Oil Fund (NYSE: BNO)and ProShares Ultra Bloomberg Crude Oil (NYSE: UCO) climbed 0.38% and 1.24%, respectively. Meanwhile, United States Oil Fund (NYSE: USO) fell 0.091%, as per Benzinga Pro.
Markets were closed on Monday for Labor Day.
Benzinga Edge Rankings show Brent Oil Fund has a Momentum score in the 92nd percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Joey Sussman