President Donald Trump is grappling with a worsening crisis in the Strait of Hormuz, a critical shipping route where Iran has blocked oil traffic as leverage in its conflict with the U.S. and Israel. Iran's new supreme leader, Mojtaba Khamenei, vowed to maintain the blockade, leading to a surge in attacks on vessels and a spike in oil prices to over $100 per barrel. In the U.S., gas prices climbed to a national average of $3.59 a gallon, according to AAA.
The International Energy Agency called the disruption the largest in global oil market history, prompting member countries to release 400 million barrels from strategic reserves. President Trump authorized the release of 172 million barrels from the U.S. Strategic Petroleum Reserve starting next week, though analysts warn this may not be enough to offset the daily loss of 20 million barrels typically passing through the strait.
Trump suggested that ships should push through the strait, but Energy Secretary Chris Wright stated the U.S. Navy is not yet ready to escort tankers due to its focus on striking Iran. Wright estimated that escort operations could begin by the end of the month. The White House also considered waiving the Jones Act to ease shipping restrictions, though no final decision has been made.
Trump framed rising oil prices as beneficial for the U.S. economy, emphasizing the country's position as the world's largest oil producer. However, Energy Secretary Wright acknowledged concerns for American consumers facing higher energy costs. Trump also reiterated his commitment to preventing Iran from obtaining nuclear weapons, warning of severe military consequences if Iran disrupts the strait with mines.