Javier Blas, Bloomberg:

Despite President Donald Trump’s blustering that America benefits when oil prices surge, crunch time is fast approaching for both the war and the energy market. He either ends the conflict quickly, or sky-high energy costs will force him to do so. The oil market may not have the same fearsome reputation as the bond market but, trust me, it can be equally savage in twisting a politician’s arm.

This week, the White House earned some breathing space thanks to the release of emergency reserves, plus the use of pipelines bypassing the Strait of Hormuz. But the extra time is measured in days, rather than weeks. Certainly, Trump does not have months.

My working assumption is that the oil market will add $3 to $6 a barrel to the headline price for every day — every single day — that the war continues. Monday to Friday, that’s $15-$30. It’s bearable for another week, perhaps two, but any longer and the world will start to incur serious economic damage through soaring energy costs. Short of a very risky — and possibly illegal — intervention in the oil futures market, the White House doesn’t have more meaningful tools to wield to bring energy prices down.

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If the war goes on for months, extending into April and May, the scenario would be grim. The cost of oil would reach stratospheric levels, stoking inflation. But the bigger issue would be growth. Extend the war from days and weeks into months, and economists will need to start reducing their forecasts for gross domestic product — and not in a linear fashion. Stagflation could become a real risk.