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White House blames Mideast tension for surging petroleum prices; plays down embargo threat

Associated Press
Thursday Apr. 4, 2002

WASHINGTON - President Bush's spokesman blamed climbing U.S. pump prices on Mideast tension, the recovering economy and seasonal factors, but expressed no concern about a possible Iraqi-led oil embargo against the United States.

Gasoline prices have jumped 23 cents per gallon over the last month and U.S. crude prices have jumped by 36 percent since the beginning of February. Motorists are likely to see higher prices at the pump as the peak summer driving season approaches, energy analysts said yesterday.

White House spokesman Ari Fleischer said Bush "has noted" the rising gasoline prices, and said escalating violence in Israel is partly responsible. The fact that the economy is in the early stages of a recovery is also to blame, Fleischer said, because it can drive up demand, which can drive up prices.

And he said this year's increase follows similar spring spikes in the last several years.

Fleischer used the rising prices to renew his call for the Senate to pass Bush's energy plan, which stalled after House passage last year. Bush's proposal would expand domestic petroleum sources, a step the White House says would decrease the nation's reliance on imported oil.

He all but dismissed the threat of an oil embargo.

Iraqi Foreign Minister Naji Sabri declared Tuesday in Malaysia that Arab countries have the right to coordinate their policies to put pressure on Israel and its defenders. Iran's foreign minister, Kamal Kharrazi, told reporters in Malaysia that such a boycott could be effective if it had backing from many oil producers.

"The two states that have said something about this topic are Iran and Iraq," Fleischer said. "They have not been met with much agreement anywhere in the Arab world."

He did not answer when asked whether the United States is asking Arab allies not to take such action.

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