Trump on Iran strike impact on oil prices: not concerned

Trump on Iran strike impact on oil prices: not concerned

Trump on Iran Strike Impact on Oil Prices: Not Concerned

U.S. President Donald Trump has signaled a willingness to escalate tensions with Iran if diplomatic efforts over Tehran's nuclear program fail, but he has downplayed concerns about the potential economic fallout, including surging oil prices. Trump stated Iran has “10 to 15 days” to agree to U.S. demands—such as abandoning nuclear enrichment and curtailing missile development—or face “really bad things.” Despite heightened geopolitical risks, the president emphasized confidence in the U.S. military and suggested he is “not thrilled” with the pace of negotiations but remains open to a deal.

Oil markets have reacted to the standoff, with benchmark Brent crude and U.S. West Texas Intermediate (WTI) prices reaching six- to seven-month highs amid fears of supply disruptions. According to market analysis, prices could climb to a seven-month high as Trump signals military action remains on the table. Analysts note that a military conflict could push prices toward $100 per barrel, particularly if Iran targets shipping through the strategic Strait of Hormuz, which facilitates 20% of global oil flows. However, Trump has not shown concern about such outcomes, stating, “We have the greatest military anywhere in the world… sometimes you have to [use it],” while acknowledging the risks of prolonged conflict.

Geopolitical analysts outline multiple disruption scenarios, ranging from U.S. or Israeli interference with Iranian oil shipments to potential Iranian retaliation against Gulf exports. Despite these risks, Trump’s administration has prioritized assembling military assets in the region while leaving the door open for diplomacy. White House Press Secretary Karoline Leavitt described a deal as “very wise” for Iran, but the president has not ruled out strikes.

While oil prices remain elevated, experts caution that market volatility hinges on the scale of any conflict and Iran’s response. Barclays strategists suggest any military action would likely be limited in scope and duration, given U.S. priorities to avoid prolonged price shocks. For now, investors remain in limbo as talks continue, with Trump asserting, “We haven’t made a final decision [on strikes]”.