Zeus: Trump running out of time on energy prices

With oil to remain high for rest of year, options to change the narrative become more desperate

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Oil facility in Shaybah, Saudi Arabia. Photo: Wikimedia.

Ah, the Sunday night Iranian ceasefire deal. Like clockwork over the past few months, the end of the weekend comes around and President Donald Trump announces a deal of sorts, ensuring a spike in U.S. stock prices the following morning.

This week’s episode didn’t disappoint investors as stocks soared on Monday. But 48 hours later the activity in the Strait of Hormuz is still limited and Trump is already talking about bombing again. Time is running out.

With only four-and-a-half months before the U.S. midterm elections, the potential for a meaningful reduction in energy prices is fading by the day. Oil remains stubbornly high. Reserves are low. Analysts said even if Hormuz did open completely today it would be months before shipments began to arrive and calm prices.

Democrats, meanwhile, have seized on the data center issue in a big way. Protests are developing across the country and legislators such as Massachusetts Democratic Sen. Elizabeth Warren are demanding disclosures from Wall Street’s biggest banks about their financing of tech and electrical infrastructure projects.

At long last water is becoming the issue it has always deserved to be.