Trump Urges Oil Producers to Lower Prices Amid Strait of Hormuz Disruptions

US President Donald Trump has urged oil producers and markets to maintain or lower prices amidst renewed disruptions in the Strait of Hormuz, a critical global oil transit route. In a post on Truth Social, Trump stated, “Everyone should keep oil prices down. I’m watching. You’re playing right into the hands of the enemy. Don’t do it.” This call comes as Iran’s parliament voted to shut down the Strait of Hormuz, a narrow maritime chokepoint through which about 20% of the world’s crude oil passes.

Trump’s directive to keep oil prices low is part of his administration’s strategy to control inflation by keeping energy costs in check. He has also directed the US Department of Energy to increase domestic oil production, posting on social media, “Drill, baby, drill. And I mean now.”

The disruption in the Strait of Hormuz has led to changes in tanker traffic, with at least six vessels altering their routes between Sunday and Monday to avoid entering the Strait. These included two very large crude carriers, three chemical tankers, and one refined products carrier. According to a senior liquid market analyst, all vessels were in ballast, meaning they were either empty or carrying light loads. Ship-tracking data showed that 44 oil carriers passed through the Strait of Hormuz on Sunday, evenly split between inbound and outbound traffic.

The incident involving the Frontline-operated Front Eagle and a dark fleet tanker named Adalynn near the Strait of Hormuz resulted in a fire aboard the Front Eagle, which was later extinguished. This incident, along with increasing insurance costs, could discourage more shipowners from operating in the area. Some owners may avoid the area altogether, causing a de facto partial supply disruption if there’s a lack of tankers to carry the oil that needs to be exported.

Geopolitical pressure from China, which purchases about 90% of Iran’s crude oil, adds another layer of complexity to the situation. Some tanker owners may feel that China is pressuring Iran not to disrupt shipping. However, if cornered, Iran might choose to inflict economic pain by targeting global oil supply.

Despite the recent military action, the White House has kept diplomatic channels open with Iran. In a Fox News interview, White House Deputy Press Secretary Karoline Leavitt stated that President Trump is open to diplomatic engagement with Iran. Trump believes that the Iranian people can control their own destiny and is still pursuing a peaceful diplomatic solution. However, if the Iranian regime refuses to come to a peaceful diplomatic solution, then why shouldn’t the Iranian people seek to take away the power of a violent regime that’s suppressed them for decades?

Leavitt also revealed that the US military posture is unchanged and described Saturday evening’s airstrikes as “decisive precision strikes” that were “successful.”