On Sunday night, he assured that the short-term rise in oil prices is a 'very small price to pay' to neutralize the nuclear threat from Iran. Despite his statements, the increase in fuel has a very sensitive side for his electorate, and according to Gas Buddy data, fuel prices in the United States rose 25 cents during the week and another 25 cents over the weekend, averaging $3.44 per gallon on Sunday night. Due to the pressure on fuels, the president bets that the war with Iran will not last more than four weeks. Although the United States has some cushion as one of the world's largest crude producers, specialists warn that it has its limits. Despite the rise in crude oil prices, as of this Monday, the price of gasoline in Mexico has not shown any increase, remaining at 24 pesos per liter. However, given the escalation of the international benchmark above $100 per barrel, the president announced that she will reactivate an agreement with gas station owners. This week, the government will sign the agreement again, which was first signed in February of last year under the understanding to review it semiannually. The president also explained this Monday, during her morning press conference, that if necessary, they will reactivate the IEPS stimulus for gasoline, so that fuel does not exceed 24 pesos, a level that has been maintained since September of last year. Oil has accumulated an increase of almost 30% and is approaching $90, while tension intensifies in the Middle East. These decisions are made under a scenario of greater energy pressures due to the conflict between the United States and Israel against Iran, which does not seem to have a clear end. This Monday, the price of crude reached levels not seen since mid-2022, due to the repercussions of the Russian invasion of Ukraine and the increase in demand after the pandemic. WTI opened the session at $102.57 per barrel, an increase of 12.81% from the previous day, but it represents a 57% advance from last week, when the conflict in Iran broke out. 'If necessary, we will use the IEPS mechanism and this week we will sign again with gas station owners that gasoline will not rise above 24 pesos.' The increase in crude oil prices comes amid reports of bombings on oil depots in Iran, while passage through the Strait of Hormuz remains paralyzed. Consequently, several Persian Gulf producers, such as Iraq, Kuwait, and the United Arab Emirates, have begun to reduce oil production. The recent cuts in oil production in the Middle East have exacerbated fears of a supply shortage, so it is expected that the Group of Seven (G7) will analyze on Monday the release of strategic oil reserves to stabilize the global energy market. Meanwhile, President Trump minimized the impacts. Investors also do not seem convinced by Trump's arguments, as stocks plummeted this Monday, while optimistic projections about the temporary nature of the conflict are changing rapidly. At the moment, the signals seem to indicate a longer closure of the Strait of Hormuz than anticipated.
