Insider reveals explosive news: The White House is simulating an extreme scenario with oil prices reaching $200!

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Bloomberg reports that informed sources reveal that officials in the Trump administration are studying the potential impact on the economy if oil prices soar to $200 per barrel, indicating that senior officials are assessing the worst-case scenario of a war with Iran.

According to these anonymous sources, modeling the potential damage of a sharp rise in oil prices to growth prospects is part of routine assessments during tense periods, not a prediction. They said this effort aims to ensure the government is prepared for all emergencies, including prolonged conflict.

Sources say that even before the outbreak of war, Treasury Secretary Yellen expressed concerns that the conflict would push up oil prices and harm economic growth. Some sources indicate that senior Treasury officials have been expressing concerns to the White House about fluctuations in oil and gasoline prices for weeks.

White House spokesperson Kush Desai called this claim “untrue,” stating, “While the government has been evaluating various price scenarios and economic impacts, officials have not studied the possibility of oil reaching $200 per barrel, and Secretary Yellen has not expressed ‘concern’ about the short-term disruptions caused by the ‘Epic Fury’ operation.”

He added that Yellen has repeatedly “conveyed her and the government’s ongoing confidence in the long-term outlook for the U.S. economy and global energy markets.”

Since the U.S. and Israel attacked Iran on February 28, oil prices have surged significantly, with U.S. benchmark WTI crude rising about 30% to $91 per barrel. Brent crude has increased nearly 40% during the same period, trading around $102 per barrel.

The White House said Wednesday that, despite Iran’s public rejection of Trump’s push for negotiations and threats of further military action if no agreement is reached, diplomatic efforts to end the war are ongoing. Trump set a five-day deadline Monday for Iran to negotiate an end to the conflict.

Previously, the White House stated that the military operation was planned to last four to six weeks. U.S. Energy Secretary Chris Wright said on March 12 that a surge in oil prices to $200 per barrel was “unlikely.”

A $200 per barrel oil price would have a huge impact on the global economy. Adjusted for inflation, this level was only reached once in the past half-century, just before the 2008 global financial crisis.

Even at lower price levels, Bloomberg Economics predicts that sustained oil prices of $170 per barrel for several months would push up inflation in the U.S. and Europe and weaken economic growth.

Trump has said he is not worried about rising energy costs and even hinted that it could be beneficial for the U.S., predicting that oil prices would fall sharply after the war ends.

However, nearly halting transportation through the Strait of Hormuz has already impacted economies worldwide. This strait typically carries up to one-fifth of global oil and natural gas exports.

Last week, European Central Bank President Christine Lagarde said that the conflict has heightened inflation risks, and the ECB, Bank of England, and Bank of Japan are preparing to raise interest rates as early as next month.

In the U.S., the most noticeable effect has been a 30% increase in retail gasoline prices, erasing the entire price decline of last year that Trump had touted as a major economic achievement.

As the Federal Reserve focuses on the impact of rising oil prices on inflation, the outlook for U.S. monetary policy is becoming increasingly uncertain. Last week, Fed Chair Jerome Powell said it is too early to judge the impact of soaring oil prices on the U.S. economy.