On Tuesday, U.S. stock markets showed little movement as oil prices dipped following President Trump’s comments suggesting that a war with Iran could be contained. However, this drop was tempered by the White House retracting previous statements about U.S. Navy escorts for oil tankers navigating through a crucial Iranian shipping route.
The Dow Jones Industrial Average experienced a decrease of 34 points, while the Nasdaq remained stable and the S&P 500 slightly declined. This came after Trump referred to the conflict as being “very complete, almost done.” Additionally, energy ministers from the G7 nations gathered to discuss the potential for releasing oil reserves.
West Texas Intermediate crude and Brent crude oil had climbed to around $120 earlier in the day but later dropped to approximately $80. They managed to bounce back, closing at $83.45 and $87.80, respectively.
Later on Tuesday, Energy Secretary Chris Wright removed a social media post that inaccurately claimed the U.S. Navy successfully escorted a tanker through the Strait of Hormuz, a vital waterway for global oil supplies.
A Department of Energy spokesperson clarified that the error was due to incorrect captioning by staff and the post was subsequently deleted. They mentioned that Trump, Wright, and the president’s team are actively monitoring the situation, engaging with industry leaders to explore options for keeping the Strait of Hormuz navigable, including the possibility of naval escort for tankers.
At a press conference, White House spokesperson Caroline Leavitt admitted she hadn’t spoken to Wright about the post but confirmed it was not accurate.
“Right now, the U.S. Navy is not escorting any tankers or ships, but it’s certainly an option the president might consider when appropriate,” she stated to reporters.
The Department of Energy had yet to respond to requests for additional comments.
House Intelligence Committee Chairman Rick Crawford noted that eventually, a U.S. naval escort could help in “starting to resume traffic” in the Strait of Hormuz, framing it more as a logistical rather than a supply issue.
Crawford added, “In the short term, we have to consider the risk of attacks from the Houthis, who are likely within range,” mentioning the uncertainty around their capabilities to target ships.
He further mentioned that other countries alongside Pakistan would also be present to help secure the Strait and manage circulation through these tricky channels.
Earlier in the day, Trump insisted on total surrender, while Army Secretary Pete Hegseth claimed it would be the “heaviest day of attack” on Iran, suggesting the conflict would conclude “on our terms.”
Jeff Krimmel, founder of Krimmel Strategy Group, commented on the significant fluctuation—around $40—in oil prices, expressing frustration over the inconsistency in presidential messaging. “If the president now claims the war is ‘almost complete,’ the market will want to believe it,” he said.
In another update, the national average gasoline price hit $3.54 a gallon, while diesel reached $4.78. These trends could have broader economic implications.
Krimmel noted that it usually takes one to two weeks for changes in oil prices to reflect in gasoline rates and mentioned that Iraq and Kuwait have begun halting production in certain fields, which might factor into the situation.
“What we’re seeing in the oil market is strange, and it could either stabilize from here or become even more volatile,” Krimmel remarked, suggesting he expects a calmer outlook moving forward.
Lastly, he pointed out that if market reactions are negative enough, it may influence the current administration’s actions, hinting at the past erratic approaches to tariffs. Oil prices remain considerably higher than they were before the U.S. and Israeli airstrikes on Iran, when WTI crude oil was reported at $67.67 per barrel and Brent crude at $72.88.
