A financial expert has warned that the price of petrol and energy could rise significantly as Donald Trump wins the 2024 US Presidential Election.
Whilst Brits narrowly escaped a rise in the cost of petrol and diesel during the Budget, with the Labour Government continuing the freeze on fuel duty, the Republican victory in the American election could cause oil prices to increase.
John Hardy, chief macro-strategist at the investment platform Saxo, noted that the way that President Elect Donald Trump tackles conflicts in the Middle East could have a significant impact on the cost of oil.
He explained: “The chief impact of a Trump presidency would be in the geopolitical arena. We can’t speculate on how he might act, other than that he will likely be tougher on Iran judging from past behaviour.
“This is a very murky area, especially as the US has become the world’s largest oil and gas producer in the last 10-15 years.”
Hardy warned that, if Mr Trump imposes a tough set of sanctions on Iran in a bid to reduce the nation’s conflict with Iraq, the global cost of oil could go up.
Many political experts are predicting that Trump will revive his ‘maximum pressure policy’ on Iran, sanctioning the oil it exports over concerns regarding the country’s nuclear programme.
According to figures published by the RAC, the average cost of petrol is 135.1p per litre, whereas a litre of diesel is typically priced at 140.39p. Neither figure is forecast to change in the coming weeks.
According to Hardy, sanctions that drive up the cost of oil would have a limited impact on North America, however could see other markets, including the UK, hit severely.
He continued: “From the US point of view, it is almost entirely self-reliant, as is Canada.
“But oil prices are extremely important for the UK as it has become far more reliant on imports since the declines in North Sea oil set in about 25 years ago – so far more is at stake for the UK and Europe and especially China, the world’s largest oil importer.”
Declaring victory in the election, Donald Trump vowed to fight for American people, thanking those who voted for him.
He added: “Look what happened. Isn’t this crazy? I want to thank the American people for the extraordinary honour of being elected your 47th president.
“I will fight for you and your family and your future, every single day I will be fighting for you with every breath in my body.”
