White House says Americans should expect higher energy prices amid Russia-Ukraine tensions
The White House says Americans should expect higher energy prices as a result of Russian President Vladimir Putin’s invasion of Ukraine and sanctions levied against Moscow.
Asked Tuesday whether Americans “should expect higher gasoline prices,” White House press secretary Jen Psaki said, “Yeah, energy prices, exactly.”
“That’s what we want the American public to be aware is a possibility,” she added.
Speaking from the White House on Tuesday, deputy national security adviser for International Economics Daleep Singh expressed optimism that gasoline prices will decline over time.
“There are actions [energy consuming nations] can take with their strategic reserves, there are actions energy producers can take in terms of their spare capacity,” Singh told reporters. “I’m not going to give you a timeline, but the collective power of those actions, and all the other tools and authorities at our disposal … will be effective in bringing down the price of gas and the price of oil.”
President Biden on Tuesday announced new sanctions against Russia, pointing to “the beginning of a Russian invasion of Ukraine.” He authorized additional U.S. forces to the region but maintained that the United States has “no intention” of fighting Russia.
U.S. gas prices may keep on rising, President Joe Biden warned on Tuesday, after the American President sanctioned Russian assets.
The sanctions, which the United States levied on Russia after its invasion of Ukraine, didn’t go as far as some would have liked, sanctioning Russian bank VEB and its military bank, and its foreign sovereign debt.
The sanctions, while cutting off Russia’s access to U.S. dollars and Western financing, will cause U.S. gasoline prices to rise.
Tuesday’s sanctions followed reports that Russian President Vladimir Putin had ordered “peacekeeping forces” into the two separatist regions—regions which Russia recognized as independent republics on Monday.
Tensions between Ukraine and Russia have been a powder keg, just waiting to blow for days now, threatening to hoist oil prices even further toward $100 a barrel—or even more. The only known—and speedy–cure for those higher oil prices now is a nuclear deal with Iran. Such a deal would allow Iran to export its crude oil with greater ease. But more importantly, it would give the market more confidence that OPEC has the ability to adequately supply the market.
Along with his warning, President Biden assured Americans that he would make sure “the pain of our sanctions is targeted at [the] Russian economy, not ours.” President Biden further said he would attempt to limit that pain that is coming for U.S. consumers at the pump.
Gasoline prices have been a worry for American consumers—and for President Biden—since he took office. On Monday, Gas Buddy data showed that U.S. gasoline prices had risen for the eighth straight week.
