President Donald Trump’s decision to remove the U.S. from the multi-country nuclear deal with Iran has already proven disastrous to the economy. But experts now claim it will also add an extra financial burden to struggling working families.
Bank of America has predicted that oil prices could reach $100 a barrel next year. Currently, the cost is $71.39 a barrel, a high price considering the recent crisis in Venezuela, which has resulted in supply issues. But with the addition of the conflict with Iran due to Trump’s backing out of the deal, Axios reports, crude oil prices continue to soar. And in the future, supply could end up suffering further as a result, and the price per barrel would then shoot up again.
With the demand for oil on the rise as Axios explained, gas prices across the U.S. would also go up, hurting working families who rely on their vehicles to commute to work. Without reliable transportation, people would lose jobs and families would go broke, having to rely on government assistance.
Is that what Trump wants his legacy to be?
While other Wall Street banks have made slightly different assessments, they still estimate that the costs will go up. Goldman Sachs, for instance, predicts crude oil could hit $82.50 a barrel in just a few months, a considerable increase.
Whether oil reaches $82.50 or $100 a barrel, gas prices are already extremely high for working families. According to USA Today, the increase we are now experiencing has already eaten into the money some families were hoping to save after the president’s tax plan went into effect. As the publication put it, what the “tax cut giveth, ... higher gas prices taketh away.”
Last year, Trump bragged about “record-low” gas prices, saying that he wanted to see them “even lower.” But if he had truly thought about all of the intended and unintended consequences of walking away from the Iran deal, he would quickly realize that his 2017 wish would no longer be a possibility.
Banner / Thumbnail : REUTERS / Jonathan Ernst