Oil Surges Past $100 Amid Iran Attacks on Gulf Facilities
Is $100 oil an economic catastrophe in the making or just temporary pain worth enduring for energy security?
Above: A petrol station in Arcore near Monza, northern Italy on March 11. Image credit: Stefano Rellandini/AFP/Getty Images
The Spin
Left narrative
It is an economic catastrophe that oil has crashed through $100 a barrel, with Iran's closure of the Strait of Hormuz threatening to push prices as high as $150 and trigger a global recession. Gas prices are already up 50 cents in a week to $3.48 a gallon. Skyrocketing supply chain costs will destroy global economic growth.
Right narrative
Near-$100 oil isn't particularly bad news for the American economy, since the country's status as a net energy exporter means stronger income in the oil patch will offset consumer spending cuts. The price spike will be short-lived once the conflict ends, and eliminating the Iran nuclear threat is worth temporary pain at the pump.
