‘Keep oil prices down. I’m watching’: Trump issues warning after Iran strikes
&imwidth=600&imheight=450&format=webp&quality=medium "‘Keep oil prices down. I’m watching’: Trump issues warning after Iran strikes")
US President Donald Trump Photograph: (Reuters)
Any rise in oil prices would lead to higher inflation for American consumers, which may become a big political problem for Trump, who won his second stint in the White House on promises to bring down prices.
Amid fears of Iran closing down the Strait of Hormuz and severely impacting oil supplies, US President Donald Trump issued a warning to global oil producers and urged them to resist any move that could increase costs. The Strait of Hormuz is one of the most important oil routes in the world, and about one-fifth of the global oil supply passes through it daily. “EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!” Trump posted on his Truth Social platform on Monday morning in all caps and using exclamation marks, as he mostly does.
Trump also issued an appeal to increase America’s domestic oil and gas supply, “To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!”
The Iranian lawmakers had threatened to close the Strait of Hormuz, a key commercial shipping channel for the world’s oil supply, in retaliation for the US strikes.
Any rise in oil prices would lead to higher inflation for American consumers that may become a big political problem for Trump, who won his second stint in the White House on promises to bring down prices.
It would also negatively impact his efforts to boost the US economy by increasing business costs that would in turn deter investment and job growth.
So far, oil prices have been subdued after jumping 4 per cent after trading began on Sunday night but pared back soon.
On Monday morning, the price of a barrel of US oil was marginally up by 0.4 per cent at $74.16 after briefly dipping, while Brent crude, the international standard, edged up by 0.2 per cent to $77.17 per barrel. Both are still higher than before strikes began on Iran over a week ago.
The subdued market reaction shows investors believe Iran is unlikely to block the Strait of Hormuz, as it is itself a major oil producer and would suffer from a closure. Analysts also suspect if Iran would close the waterway, since it itself uses it to move its own crude, mostly to China, and needs the revenue.
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US Secretary of State Marco Rubio said on Sunday that any attempt by Iran to block the strait would be “economic suicide” and would draw a response from Washington.
