Trump officials are discussing the possibility that oil prices will climb to $150 a barrel, a development that could further alter the global economy, according to a new report.
Politico noted that officials are discussing the economic impact of such a scenario and ideas to bring down the costs, including additional energy powers.
Treasury officials believe prices could stay above $100 per barrel for some time, considering it the "baseline" scenario, and is not ruling out one in which it can reach $200 per barrel.
Disruptions are largely a result of Iran's closure of the Strait of Hormuz, a key waterway through which about 20% of the global energy passes.
In this context, the United Arab Emirates is getting ready to join the war in Iran to help the U.S. reopen the strait, according to another report.
The Wall Street Journal detailed that the country is seeking a UN Security Council resolution authorizing military action for that purpose.
Diplomats have already urged other countries to form a coalition to forcefully enter the strait, noting that Iran believes it is fighting an existential war and willing to take down the global economy to survive.
Elsewhere in the report, the outlet claimed that the UAE also said that the U.S. should occupy key islands in the area. It includes Abu Musa, which has been held by Iran for decades but the UAE claims for itself.
The Emirati Foreign Ministry said there is "broad global consensus that freedom of navigation in the Strait of Hormuz must be preserved."
Other countries in the Gulf, including Saudi Arabia, are also pushing the U.S. to continue the war until taking down the Tehran regime.
However, Trump continues to give mixed messages about the future of the war, most recently saying operations could end in "two or three weeks, maybe a couple of days longer" He will deliver a prime-time address on Wednesday to give an update on the war.
Moreover, he said on Wednesday he claimed that "Iran's New Regime President, much less Radicalized and far more intelligent than his predecessors, has just asked the United States of America for a CEASEFIRE!" He did not clarify which official he was referring to.
"We will consider when Hormuz Strait is open, free, and clear. Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!" he added.
