By Jarrett Renshaw
HOUSTON, March 26 (Reuters) – U.S. officials this week said the historic spike in fuel prices during the war in Iran will be short-term and trumpeted record U.S. production at an industry conference where oil executives and government officials from Asia, the Middle East and Europe bemoaned the worst oil and gas supply disruption in decades.
The contrasting messages relayed to industry leaders at the annual CERAWeek conference in Houston reflected the different political realities in the U.S. and the rest of the world.
U.S. cabinet members said American consumers could absorb a temporary price shock. Their effort to project calm reflected the political stakes for President Donald Trump, who has slid in the polls even as he repeatedly said the war is already won and promised the financial pain will be short-lived.
Still, Iran has continued hitting its neighbors with missile and drone strikes while keeping the Strait of Hormuz closed to shipping, halting a fifth of global oil and gas supplies. Global oil prices have spiked above $100 a barrel.
Supply disruptions have already slowed the global economy. Some countries in Asia dependent on Middle East oil face fuel shortages and are taking steps such as work-from-home directives. Europe is bracing for shortages to hit next month.
The impact of the war on energy supplies would last much longer than the conflict itself, executives said, because of damage inflicted on oil and gas infrastructure by Iran in response to the U.S.-Israeli attacks.
Trump’s approval rating has slumped to its lowest point since he returned to the White House, a Reuters/Ipsos poll found, as many Americans have blanched at surging fuel prices and disapproved of the war on Iran. Trump’s Republican Party faces a fight to retain slim majorities in the U.S. Congress in November’s midterm elections. The issue of affordability has emerged as a central theme.
“Markets do what markets do,” U.S. Energy Secretary Chris Wright said in the keynote address at the conference. “Prices went up to send signals to everyone that can produce more, please, produce more. The prices have not risen high enough yet to drive meaningful demand destruction.”
Wright touted expanding U.S. liquefied natural gas exports, efforts to keep coal power plants from retiring and plans to cut red tape for new nuclear projects.
“Every day our mission remains clear: grow energy, improve American lives, strengthen American security and strengthen the world,” Wright said.
Interior Secretary Doug Burgum acknowledged the higher fuel prices were impacting Americans but said it would be short-term.
