In light of escalating tensions in the Strait of Hormuz, US President Donald Trump has urged oil markets to remain vigilant about oil prices.
Trump Calls for Lower Oil Prices
President Donald Trump has called on oil producers and markets to either maintain or lower oil prices. In a post on Truth Social, he remarked, "Everyone should keep oil prices down. I’m watching. You’re playing right into the hands of the enemy. Don’t do it."
Situation in the Strait of Hormuz
Iran's parliament voted to close the Strait of Hormuz, a strategic chokepoint through which about 20% of the world's crude oil passes. Saxo Bank analyst Ole Hansen indicated that "Iran may choose to target tanker traffic in the Strait as a form of retaliation."
Further US Actions and Diplomatic Efforts
Trump has also directed for an increase in domestic oil production, stating, "Drill, baby, drill. And I mean now." White House Deputy Press Secretary Karoline Leavitt mentioned that the president is open to diplomatic engagement with Iran despite recent military actions.
The situation in the Strait of Hormuz remains tense. Trump's remarks and potential Iranian actions could impact global oil markets.
