Trump strongly advices petroleum producers to ‘keep oil prices down’
(MENAFN) US President Donald Trump has urged oil producers to keep prices from rising amid market instability triggered by recent American strikes on Iran’s nuclear facilities and Tehran’s threat to close the Strait of Hormuz, a vital route for global oil shipments.
Following US airstrikes targeting nuclear sites in Fordow, Isfahan, and Natanz, crude oil prices briefly surged to five-month highs before easing. Trump took to his Truth Social platform on Monday, warning producers not to push prices higher, saying, “EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!” He also called on the Department of Energy to immediately increase domestic oil production, urging: “DRILL, BABY, DRILL!!! And I mean NOW!!!”
Oil prices have risen about 10% since Israel’s unexpected strike on Iran ten days earlier amid fears of wider regional conflict and supply disruptions. Tehran, controlling the Strait of Hormuz—through which about 20% of the world’s oil passes—has threatened to close the vital waterway in retaliation. Although Iran’s parliament approved the move, the final decision lies with the national security council.
Experts note that a full closure would be challenging since Iran depends on the strait to export oil, particularly to China, its largest customer. US Secretary of State Marco Rubio called on China to pressure Iran against such action, emphasizing Beijing’s significant influence.
The US Energy Information Administration describes the Strait of Hormuz as the “world’s most important oil transit chokepoint.” Analysts warn that any disruption could push oil prices higher and negatively affect the global economy. Goldman Sachs economist Jan Hatzius projected that a prolonged closure could lower global GDP by over 0.3 percentage points and drive inflation up. S&P Global also cautioned that natural gas supplies could be seriously disrupted.
As of Monday, Brent crude traded near $72 per barrel, while US benchmark WTI briefly spiked to $78 before retreating to around $70. Analysts suggest Brent prices could soar as high as $110 per barrel if the strait is blocked.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
