Oil prices retreated back below $100 after President Trump declared the Iran war "is very complete, pretty much."
Despite the comments, little changed on the ground, with shipping through the Strait of Hormuz still restricted by the conflict. About 20 percent of the world's oil and gas supply is exported through the Strait. The inability to export means that nations in the Middle East will eventually run out of storage capacity for oil and will have to shut down production.
Reuters reported Saturday that Kuwait issued a trade notice saying it would cut oil production due to the war and the hazards in the Strait. The Associated Press reported that oil briefly reached $120 a barrel Monday, before retreating back to around $90. The price movement might have been driven in part by Trump's comments to CBS News.
"I think the war is very complete, pretty much," the president told CBS News while speaking from his Doral, Florida, golf club. "[Iran has] no navy, no communications, they've got no air force. Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones."
In an interview with CBS News, Trump also mused that he is "thinking about taking it over," referring to the Strait of Hormuz, a critical oil shipping lane.
Meanwhile, across the U.S. average gas prices continue to rise. AAA listed the average price on March 10 at $3.53 a gallon, up from $3.25 on March 5.
The AP noted that although oil prices settled down late Monday and early Tuesday, oil prices overall are still up about 34 percent since the war began.
Originally published on IBTimes
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