The U.S. oil prices are rising while the job market is shrinking — a dangerous combination for Trump. The Republican Party is preparing for the upcoming midterm elections, which are likely to be dominated by voters' concerns about the economy. A report released by the U.S. Department of Labor on Friday showed that the U.S. economy lost 92,000 jobs in February; the agency also revised downward its estimates for the previous two months. This disappointing result erased the significant job gains that the White House was celebrating just last month. The unemployment rate rose slightly to 4.4%. Meanwhile, the Iran war has pushed oil prices close to $85 per barrel. Economists warn that a shrinking job market combined with rising oil prices could weaken the economy. At the same time, due to this conflict, U.S. gasoline prices have risen nearly 27 cents this week — a surge never seen since Russia's invasion of Ukraine in 2022. White House officials are trying to find ways to lower gasoline prices. Besent announced on Thursday a temporary sanctions exemption for Indian fuel manufacturers purchasing Russian oil. Prolonged oil price shocks could push up consumer prices, further increasing inflationary pressures, which would make it harder for Federal Reserve officials to lower short-term borrowing costs.
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