Trump Vows Retaliation Against Iran Proxies as $4 Gas Threatens Midterm Message
Updated
Updated · POLITICO · Jul 31
Trump Vows Retaliation Against Iran Proxies as $4 Gas Threatens Midterm Message
3 articles · Updated · POLITICO · Jul 31
Summary
Wednesday's pledge to intensify attacks on Iran and its proxies followed recent strikes on Saudi energy infrastructure and U.S. military installations, with Trump warning of a much harsher U.S. response.
Houthi attacks have caused limited damage so far, but analysts say they signal room for wider escalation and a bid by Iran to strain Saudi Arabia's alliance with Washington.
Oil briefly topped $100 a barrel last week, global storage is near tank bottom, and the U.S. average gasoline price has climbed back above $4 a gallon.
Abqaiq and other Saudi facilities now carry outsized market risk because renewed Houthi-Saudi exchanges are already threatening a 2022 informal ceasefire and disrupting a second key energy chokepoint.
That leaves Trump trying to negotiate an end to the conflict while any further hit to Saudi supply could quickly feed through to higher fuel costs and a tougher midterm backdrop.