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The price of oil is up 3 percent to $63 per barrel and the market is only down a fraction from its all-time highs, according to Varney.
“We’re still at 28,000 on the Dow and the economy keeps growing. The political frenzy so evident in D.C. and in the media has not been seen on the financial markets,” he added.
The new reality is that American is the dominant power in the world’s energy markets and drillers in the United States can make up for any shortfall in Middle Eastern oil supply should a restriction occur, Varney said. The slightly higher price of oil makes American drillers more profitable, meaning Iran his actually helping Texas and North Dakota, he argued.
Stocks too remain resilient. The Dow is down a couple of hundred points since Soleimani’s killing, but that is “hardly a big deal” when the market is close to its record highs, Varney said.
“The Soleimani killing has made no discernible difference to the economy’s performance. I should qualify that by saying ‘so far,’ because we don’t know how this is going to play out. But, so far, investors don’t see World War III,” he said.
Iran is not the threat to American prosperity, according to Varney, it is Democrats that pose a far greater risk. Democrats would drive oil up to $100 per barrel if environmentalists shut down American frackers, cause a recession if the left vastly increases taxes and a market selloff if the Green New Deal gets “forced down our throats,” Varney argued.
“Cheer up. We are an island of stability and prosperity led by a president who puts America first,” he concluded.