Peter Schiff warns Trump SPR drawdown could drive oil prices higher

1 min read | Published on 10 Sept 2026, 12:08 PM |Updated on 10 Sept 2026, 12:08 PM

Reviewed by

Ritika DScanX News Team

Add as a preferred
source on Google

Key Highlights

Peter Schiff warns oil prices could surge by 2028 if the Strategic Petroleum Reserve remains empty
WTI crude trades at $95.66 while Brent exceeds $100.56 amid geopolitical tensions
National average gas price hits $4.22/gallon with diesel at $5.94/gallon
US Central Command denies IRGC claims of striking US vessels in the Strait of Hormuz

*this image is generated using AI for illustrative purposes only.

Economist Peter Schiff warned that oil prices could rise significantly in the coming years, arguing that the Trump administration's drawdown of the Strategic Petroleum Reserve leaves the US with less protection against future supply shocks.

Schiff posted on X on Wednesday, highlighting that oil is over $95 per barrel despite efforts to suppress prices. He questioned the market condition by the 2028 Presidential Elections, noting the risks if the SPR remains empty for over a year.

Oil and Gas Prices

West Texas Intermediate (WTI) futures ending in October traded at $95.66, while Brent crude futures ending in November exceeded $100 to reach $100.56 at press time. The United States Oil Fund (NYSE: USO) fell 1.16% to $148.23 during overnight trading on Wednesday.

Metric	Price	Change
WTI Futures (Oct)	$95.66	-
Brent Futures (Nov)	$100.56	-
USO ETF	$148.23	-1.16%

Data from the American Automobile Association showed the national average price of gas was $4.2245/gallon on Wednesday. Diesel averaged $5.9424/gallon, while premium gas stood at $5.1200/gallon.

Iran Tensions

Amid escalating tensions, the Islamic Revolutionary Guard Corps claimed it struck two US vessels and multiple tankers after the US Central Command said it had struck Iranian government oil tankers. CENTCOM denied the IRGC's claim, stating none of its vessels were hit.

The administration reportedly adopted a "tanker for tanker" policy to deter Iranian strikes in the Strait of Hormuz. Schiff also criticized Trump's comments about the war in Iran ending immediately after the midterms, calling it a lie.

How might the depletion of the Strategic Petroleum Reserve impact US inflation rates and consumer spending power leading up to the 2028 election?

What are the potential long-term consequences for global energy security if the 'tanker for tanker' policy escalates into a broader conflict in the Strait of Hormuz?

Could sustained oil prices above $100 per barrel accelerate the transition to renewable energy sources or electric vehicles among US consumers?

Trump predicts oil below $2/gallon; Brent crude hits highs

0 min read | Published on 10 Sept 2026, 12:33 AM |Updated on 10 Sept 2026, 12:33 AM

Reviewed by

Ritika DScanX News Team

Add as a preferred
source on Google

Key Highlights

U.S. President Trump predicted oil prices would fall below $2 per gallon shortly after the election
He noted the price decline might take longer than the midterm elections to materialize
Brent and US crude futures settled at their highest levels since May 22
Escalating Middle East tensions raised global supply concerns, driving prices higher

*this image is generated using AI for illustrative purposes only.

U.S. President Trump stated that oil prices would drop below $2 per gallon shortly after the election, adding that the decline might take longer than the midterm elections. This prediction contrasts with current market movements driven by geopolitical factors.

Brent and US crude futures settled at their highest levels since May 22. The rise in prices was attributed to escalating tensions in the Middle East, which have raised concerns about global supply.

Market Reaction

The divergence between political rhetoric and market pricing highlights the impact of immediate supply risks on commodity valuations. While the administration projects a significant long-term price reduction, near-term volatility remains elevated due to regional instability.

Brent and US crude futures reached peak levels since May 22.
Escalating Middle East tensions are cited as the primary driver for supply concerns.
President Trump forecasted a price drop to below $2 per gallon, noting a timeline extending beyond the midterms.

How might the administration's proposed energy policies specifically counteract the supply disruptions caused by Middle East tensions to achieve the sub-$2 per gallon target?

What impact could prolonged geopolitical instability in the Middle East have on OPEC+ production decisions and global crude inventory levels in the coming quarters?

To what extent will the divergence between political forecasts and current market pricing influence investor sentiment and hedging strategies in the energy sector?