CNBC host Jim Cramer warned on Thursday that surging crude prices could trigger a painful equity selloff, arguing that oil’s parabolic move under President Donald Trump risks a 20% stock market drawdown.
- USO shares are climbing. See the chart and price action here.
Cramer’s 20% Selloff Warning
Cramer highlighted in an X.com post that crude oil is “up 87% for the year,” tying the move directly to Washington’s handling of energy and Middle East risk.
He blasted what he called a “mind-boggling misdirection play” from the president, suggesting policy rhetoric is ignoring the inflation shock building in real time at the pump.
In a stark historical claim, Cramer said, “Remember we don’t have any instances of oil being up 100% and the market NOT being down 20%. So here we go again…,” framing the current spike as a classic prelude to an equity air pocket.
This post was originally published here
