Economist and Echelon Wealth Partners co-founder Peter Schiff warned that oil prices could rise significantly in the coming years, arguing that the Trump administration’s drawdown of the Strategic Petroleum Reserve could leave the U.S. with less protection against future supply shocks.

Trump Rapidly Depleting SPR, Peter Schiff Says

In a post on X on Wednesday, Schiff warned against rising prices of oil in the global market amid tensions between the U.S. and Iran. “Oil is over $95 per barrel,” Schiff said, adding that the price was rising despite the Trump administration “rapidly draining the SPR to keep oil prices suppressed prior to the midterms,” he added.

Schiff then questioned what the condition of the oil market will be by the 2028 Presidential Elections. “Imagine how much higher oil prices will be by the general election in 2028, if the SPR has been empty for over a year,” the investor said.

Schiff had also criticized Trump’s comments about the war in Iran coming to an end “immediately” after the end of the midterm elections, saying that it was Trump’s latest lie.

Read Also: Ross Gerber Says Gas Prices Are 'Back to the High,' Calls for 'Change in America'

Oil and Gas Prices

At the time of writing this article, the West Texas Intermediate (WTI) futures ending in October were at $95.66, while the Brent crude futures ending in November exceeded the $100 mark to $100.56 at press time. Oil ETF United States Oil Fund (NYSE:USO) was down 1.16% to $148.23 during overnight trading on Wednesday.

On the gas and diesel front, data shared by the American Automobile Association (AAA) showed that the national average price of gas was $4.2245/gallon on Wednesday, with the national average price of diesel at $5.9424/gallon and Premium gas at $5.1200/gallon.

Iran War

Amid escalating tensions, the Islamic Revolutionary Guard Corps (IRGC) claimed that it had struck two U.S. vessels, as well as targeted multiple tankers, after the U.S. Central Command (CENTCOM) said it had struck Iranian government oil tankers in the region. However, CENTCOM denied the IRGC’s claim, saying none of its vessels had been struck.

The administration had earlier reportedly adopted a “tanker for tanker” policy against Iran, saying that it will deter Iranian strikes on vessels in the Strait of Hormuz.

Read Also: Energy Secretary Chris Wright Says Gas Prices Are ‘More Likely To Go Down Than Go Up’ Despite Record Labor Day High

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Photo courtesy: Shutterstock/ Joey Sussman