Price of Oil Surges as Trump Tells Allies to Secure Strait of Hormuz
George Caldwell /
The price of oil surged on Thursday, after President Donald Trump pledged in an address to the nation to “finish the job” in Iran and said America’s allies should help open up the oil trade stalled by the conflict.
During his Wednesday evening Oval Office address on Iran, Trump said that the Strait of Hormuz, a vital waterway for the oil trade targeted by Iran, “will open up naturally” once the conflict is finished.
The president also said Americans “don’t need” the strait for oil and called for other countries to “take the lead in protecting the oil that they so desperately depend on.”
Ahead of Trump’s address, the spot price per barrel of West Texas Intermediate oil—a common benchmark for oil pricing—dipped to $97.77. After the speech, the price spiked, climbing to more than $113.50 by 9:30 a.m.
The rise in the price of oil is inflating prices at the gas pump across the United States.
As of Thursday morning, the average price of a gallon of regular gasoline is more than $4 in the United States, according to AAA. One month before, it was under $3.
The average national price for regular gasoline still remains below the all-time high of more than $5 in June 2022.
Secretary of Energy Chris Wright said in early March that the current energy inflation is a “temporary period of elevated energy prices” that will take weeks, rather than months.
European and other states have said they will only help secure the strait if there is a ceasefire. With pressure growing, some 40 countries were exploring ways to restore freedom of navigation at virtual talks on Thursday.
Britain said the talks were focused on diplomatic and economic tools. France said the process would be multi-phased and could not begin until hostilities had calmed or ended.
Iran’s armed forces responded to Trump with a warning for the United States and Israel of “more crushing, broader and more destructive” attacks in store.
Reuters contributed to this article.