Crude prices surged past $110 a barrel as the Strait of Hormuz remained closed, but President Donald Trump dismissed economic concerns, calling the oil price spike a minor cost for eliminating Iran’s nuclear threat.
Donald Trump reacts to oil price surging amid Iran war
Global energy markets spiraled into turmoil over the weekend as fighting in the Middle East choked off a critical chokepoint for oil shipments. West Texas Intermediate jumped 26.5% to $114.90 per barrel, while Brent crude advanced 23% to $114.25. US crude posted its biggest weekly gain in futures trading history, dating back to 1983, surging about 35% last week alone.
The price explosion is the first time oil has topped $100 per barrel since Russia invaded Ukraine in 2022. But for the Trump administration, the economic shockwave is secondary to military objectives.
Shortly after oil blasted past $100 at March 8 evening trading, Donald Trump took to Truth Social to address concerns about rising energy costs. Trump argued that a jump in “short term oil prices” was a “very small price to pay” for destroying Iran’s nuclear capabilities. “Only fools would think differently!” the president added, dismissing critics who warned about the economic fallout from the war.
Furthermore, Trump’s comments came as major Gulf producers moved to cut output, unable to move their oil through the Strait of Hormuz. About 20% of the world’s oil consumption typically passes through the narrow waterway, but tankers now refuse transit, fearing Iranian attacks. Like Kuwait, OPEC’s fifth-biggest producer, announced precautionary cuts on Saturday to production and refinery output, citing “Iranian threats against safe passage of ships through the Strait of Hormuz. (via CNBC)”
Now, the war has shown few signs of easing despite Trump’s claim it was “already won,” leaving markets to grapple with continued uncertainty and consumers facing the prospect of sustained higher energy prices.
