Iran Speaker Taunts Federal Reserve Over Oil Price Control

Speaker of Iran's Parliament Mohammad Bagher Ghalibaf used social media to taunt the United States Federal Reserve and President Donald Trump, claiming that Iran controls global oil prices and the associated risk premium. Ghalibaf posted a satirical Straits Taylor Rule to argue that interest rate hikes are ineffective against supply chokepoints in the Strait of Hormuz and the Strait of Bab el-Mandab, which are partially closed by Iran and its Houthi allies.

The exchange followed an announcement by Federal Reserve Chair Kevin Warsh to raise interest rates to combat inflation. This decision occurred despite opposition from President Trump. Warsh stated that the Federal Reserve cannot affect individual prices, such as oil or groceries, but aims to prevent relative price changes from creating broader economic effects.