Trump Weighs Options as Oil Prices Soar Amid Strait of Hormuz Tensions
Oil prices continued to soar on Friday, reaching their highest level since September 2024 at $3.32 per gallon.
The surge in oil prices is attributed to the near-closure of the Strait of Hormuz, a critical trading route that facilitates about one-fifth of global crude supply.
US Treasury Secretary Scott Bessent took action by announcing a 30-day waiver permitting Indian firms to purchase some Russian crude, but the move did not reassure jittery traders as prices continued to climb.
President Donald Trump has floated two policies aimed at alleviating the tanker stoppage: government-backed shipping insurance and US Naval escorts.
Christopher Tang, a professor of supply chain management at UCLA, noted that the notion of government-backed insurance could offer a 'short-term fix' but would likely make little dent in the oil-price spike.