US President Donald Trump warned Monday that raising oil prices would “play into the hands of the enemy,” following recent American military strikes on Iran’s key nuclear sites. In a post on his social media platform Truth Social, Trump stated, “EVERYONE, KEEP OIL PRICES DOWN, I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!”Due to the recent escalation in the Middle East, oil prices have spiked in recent days. Markets saw a volatile opening on Monday morning, with Brent crude, the international standard, reaching a five-month high before seeing a dip of 1.14% to $76.13 a barrel. .West Texas Intermediate crude futures saw a rise early in the day of 4.6 per cent, reaching $78.40 before losing those gains, trading at $74.03 a barrel. In a subsequent post, the President went on to say, “To the Department of Energy: DRILL, BABY, DRILL!!! And I mean Now!!!”US Energy Secretary Chris Wright responded, “We’re on it” in a post on X, stating that under to the President’s leadership, “America’s energy sector is stronger than ever before.” Some American oil producers have previously warned earlier this year they may be forced to cut production after prices fell to multi-year lows..In a May letter to shareholders, Diamondback CEO, Travis Stice warned the US oil production was at "a tipping point at current commodity prices," and that it was likely, "US onshore oil production had peaked and will begin to decline this quarter."It now remains to be seen whether or not Iran will respond by limiting or cutting off total access to the Strait of Hormuz, a crucial chokepoint in the Persian Gulf through which one-fifth of the world’s oil supply is transported annually. In a June 21 tweet, Iran’s Foreign Minister Abbas Araghchi said the United States’ actions were, “outrageous and will have everlasting consequences.”.Iranian state media reported on Sunday that the country’s parliament had voted to close the 90-mile strategic point but there has been no definite action taken so far. The Islamic Republic uses the Strait to ship its oil to China and other buyers, with roughly 21 million barrels from Iran and other countries such as Iraq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates passing through the waterway daily.
