Trump Urges Oil Producers to Stabilize Prices After Strikes on Iran
On Monday, President Donald Trump urged oil producers to keep prices low in the wake of US airstrikes on Iran’s nuclear sites over the weekend. He expressed concerns that rising energy costs could empower American adversaries.
“Guys, lower the oil prices. I’m watching! You’re playing directly into the enemy’s hands. Don’t do that!” Trump communicated on his social media platform early Monday morning.
The president’s message seemed to have a positive effect on the oil market, as both Brent crude and West Texas Intermediate oil prices saw a decline of about 1%.
While he didn’t specify whom he was addressing, it appeared the message was aimed at the domestic oil sector. Recently, some US producers hinted at possible production cuts, especially with OPEC+ aiming to restore their production quotas amidst decreasing prices and a greater global supply.
Following his initial post, Trump added: “To the Department of Energy: Drills, Babes, Drills!!” However, it’s worth noting that US oil production is largely in the hands of private enterprises and influenced by market dynamics, rather than directed by government mandates.
Even amid rising geopolitical tensions, oil prices have remained relatively stable since the airstrikes. Brent crude initially jumped over 5% in reaction to the assaults on Sunday night, while WTI briefly reached its peak since January before falling back.
The US military targeted three significant Iranian nuclear sites: Fordow, Natanz, and Isfahan, marking a significant escalation in regional conflict. This action has raised concerns about potential retaliation and risks to Gulf energy infrastructure, though the market has reacted cautiously, reflecting a wait-and-see approach among traders.
Analysts suggest that the tempered market response indicates a lack of clarity regarding Iran’s next steps and doubts about severe disruptions to oil supplies. Iran’s parliament is advocating for the closure of the Strait of Hormuz, but such actions would require consent from the national security council and Ayatollah Ali Khamenei, the supreme leader.
