Oil Prices Surge During Trump’s Primetime Address on Iran

CNN

President Donald Trump delivered a primetime address about Iran on Wednesday that did little to quell worries about the ongoing war against the country.

Trump spoke from the White House for about 20 minutes and offered little in the way of new information about the conflict that the U.S. and Israel started on Feb. 28. The president reiterated that the war will take another two or three weeks, demanded Iran reopen the Strait of Hormuz, and also called on other countries to find a way to reopen the vital waterway, through which 20% of the world’s oil flows.

Around the time Trump began speaking on Wednesday at 9 p.m. ET, West Texas Intermediate crude was trading at about $98 a barrel. By the time he concluded his remarks, it had risen to nearly $103, a five percent jump. Brent crude also rose sharply during that time, from about $99.50 a barrel to $105. Dow, S&P, and NASDAQ futures all turned lower, shedding around one percent each.

The price of gasoline has risen markedly since the conflict began. On Wednesday, the national average was $4.06 a gallon, compared to just under $3 a gallon right before the war.

The war upended global oil markets, especially after Iran effectively closed the vital Strait of Hormuz, a possibility Trump reportedly dismissed to aides before the war began. Trump has given conflicting messages about the strait, which he said the U.S. does not need. He has also said European countries and/or China should try to reopen the strait, which the president has also claimed will somehow “open itself.”

Last week, Secretary of State Marco Rubio slammed Iran’s tolling system.

“Not only is this illegal, it’s unacceptable, it’s dangerous for the world,” Rubio said. “And it’s important that the world have a plan to confront it.”

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