Iran situation is difficult to calm down! Trump warning: Oil prices may remain high before the November midterm elections.

President Donald Trump said that oil and gasoline prices may remain high before the midterm elections in November. He acknowledged that the decision to attack Iran six weeks ago may have political consequences. When asked over the weekend if fuel prices would decrease in the fall, Trump said, "They may be the same, or slightly higher, but should be similar to current levels." According to GasBuddy data, the average price of regular gasoline at U.S. gas stations in April was above $4 per gallon most of the time. GasBuddy's data shows that in February, the average price of gasoline in the U.S. hovered below $3 per gallon and had not exceeded $3.25 per gallon in the past year. Earlier on Sunday, Trump announced on social media that the U.S. Navy would blockade the Strait of Hormuz and intercept any vessel paying transit fees to Iran. Previously, talks between the U.S. and Iran in Pakistan over the weekend failed to reach a peaceful agreement. Hours after Trump made this statement, U.S. Central Command clarified that the blockade is limited to vessels traveling to and from Iranian ports. Central Command stated that vessels traveling to non-Iranian ports will not be intercepted by the U.S. military. Due to the unsuccessful negotiations between the U.S. and Iran and Trump's statements, Brent crude oil prices surged by 8% on Monday, exceeding $103 per barrel. Several analysts have issued warnings about high oil prices. Anna Wu, cross-asset strategist at VanEck, stated that the market is increasingly believing that the oil price shock is not just a temporary disturbance, but a medium to long-term scenario - oil prices may "remain at higher levels for a longer period of time." Vivek Dhar from the Commonwealth Bank of Australia said, "The blockade will further tighten the spot oil and refined oil markets." The analyst added that the scarcity of physical oil in the spot market is reflected in the oil benchmarks with physical delivery, which "may lead to oil prices exceeding $140 per barrel in the coming weeks." Jorge Montepeque, Managing Director of Onyx Capital Group, also warned that if the U.S. implements a naval blockade in the Strait of Hormuz as planned, oil prices could skyrocket to $150 per barrel.