Iran conflict erodes US energy advantage, FT reports

BASRA, Iraq — A war with Iran has undercut the United States' energy advantage and weighed on its economy, the Financial Times reported. Although the US remains the world's largest oil producer, daily output growth has not exceeded 200,000 barrels, according to US Energy Information Administration data cited by the paper. The Financial Times estimated that roughly 20 million barrels of oil normally flowing from the Middle East through the Strait of Hormuz have been disrupted by the conflict. Energy consultant Art Berman told the paper that the administration has handled energy policy much as nearly every White House since Franklin Roosevelt's era, leaving the sector poorly understood at the federal level. The fallout has hit American consumers directly. Gasoline and diesel prices have risen 40 percent, with average diesel costs during the Trump presidency surpassing levels seen under President Joe Biden. Annual consumer inflation has climbed to 4.2 percent, the highest in three years, while the 30-year mortgage rate has risen from 5.98 percent to 6.65 percent. US gross domestic product grew 1.5 percent in the second quarter, falling short of Commerce Secretary Howard Lutnick's forecast of 5–6 percent growth. The Financial Times said Middle East fighting has eroded American consumer confidence and deepened dissatisfaction with the economy during the Trump era.