One of the economic consequences of Trump’s killing of the Iran deal is that it will cost already increasing gasoline prices to go even higher.
Ali Velshi of MSNBC explained the economic consequences:
Velshi said:
The move could tighten up the oil supply or disrupt it. Here’s what’s important to know. One-third of all oil shipped to the world passes through this little bottleneck here. It’s called the Strait of Hormuz. It’s a narrow waterway separating Iran from the Arabian peninsula and nearby U.S. Military bases. This strait is only 21 miles at the narrowest point. Iran has threatened to mine the strait in the past. That would make it difficult for ships carrying the oil to get out. Usually, when tensions are high in the Persian Gulf, the U.S. Navy patrols and helps the ships get through.
If Iran felt provoked, however, the movement of 17 million barrels of oil per day, and it’s not just from Iran could be held up. The oil comes from U.S. Allies. Saudi Arabia, Qatar, all of them could find it more difficult to export oil, because they’re all over here, and that’s the Strait of Hormuz. That, of course, translates into higher prices for you at the pump even with the deal still in place but in peril, gas prices have been rising. A gallon of unled gas costs almost 47 cents more today than a year ago. This isn’t all Iran. Just lately Iran contributed. This is not a mistake. Gas prices are calculated to a tenth of a cent when you go to the gas station. All this is just the economic impact of canceling the deal.
Trump raised the cost of healthcare with his sabotage of the ACA, and now he is going to raise the price of gasoline. It isn’t difficult to understand why Trump and Republicans don’t see good poll numbers in response to the economy. In their daily lives, people aren’t feeling prosperous. Prices are going up on vital necessities, while wages aren’t keeping up with the increase and too many Americans lack the kind of good paying jobs that create economic security.
The president will spout his I’m going to cut a better deal rhetoric, but he has yet to prove that he is capable of crafting better deals.
Donald Trump’s policies are hitting people in the wallet, which is why a Democratic blue wave is coming in the midterm election.
For more discussion about this story join our Rachel Maddow and MSNBC group.
Awards and Professional Memberships
Member of the Society of Professional Journalists and The American Political Science Association
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