Trump Reframes Rising Oil Prices as Advantage for US as Hormuz Crisis Shakes Global Energy Markets
US President Donald Trump has once again altered his public stance regarding the surge in energy costs, now suggesting that elevated crude prices could actually work in America’s favour, even as tensions with Iran continue to unsettle global energy markets.
The shift in tone comes at a time when the administration is facing growing pressure over the lack of a clear plan to restore normal shipping through the Strait of Hormuz.
The narrow waterway, considered one of the world’s most crucial energy transit corridors, remains effectively blocked as escalating hostilities in the region leave numerous oil and gas tankers stranded.
Trump Says US Gains from Higher Oil Prices
In a message posted Thursday on his social media network Truth Social, Trump argued that the United States stands to benefit from rising petroleum prices because of its massive domestic production.
He noted that the United States is currently the world’s largest crude oil producer and said that when global oil prices rise, American energy producers generate substantial profits.
Earlier Message Focused on Low Fuel Prices
The remarks represent a noticeable departure from Trump’s earlier messaging.
Only a few weeks ago, while delivering his annual address to Congress during the State of the Union Address, he highlighted the relatively low price of petrol in the United States, pointing out that gasoline was selling for roughly $2.30 per gallon at the time.
However, fuel costs have since climbed sharply. Data released by AAA indicate that average petrol prices have surged by more than 50 per cent, reaching around $3.60 per gallon nationwide.
Conflict With Iran Driving Price Volatility
Trump also defended the temporary rise in energy costs, saying the increase is a minor trade-off for what he described as improved security for the United States and the wider world.
According to Trump, oil prices are likely to fall again once the threat posed by Iran’s nuclear programme is eliminated, suggesting the current price spike should be viewed as a short-term consequence of the ongoing conflict.
Mixed Signals on Economic Impact
Earlier in his political messaging, Trump had argued that high gasoline prices helped him defeat former US president Joe Biden in the election.
At other times, however, he has said he is not particularly worried about the present surge in fuel costs affecting voters or forcing his administration to halt military operations against Iran prematurely.
Economists Warn of Wider Economic Risks
Economic experts caution that a prolonged rise in oil prices could create broader challenges for the global economy, including higher inflation and increased costs for transportation and manufacturing.
With instability in the Middle East continuing to rattle financial markets, analysts at Goldman Sachs have revised their projections for international crude prices.
Investment Bank Raises Oil Price Forecast
Energy strategists at Goldman Sachs now estimate that Brent crude will average around $71 per barrel during the final quarter of the year, compared with their earlier forecast of $66 per barrel.
Similarly, the bank has increased its outlook for West Texas Intermediate, predicting it will average $67 per barrel, up from its previous estimate of $62 per barrel during the same period.
These updated projections represent a notable upward revision from the bank’s earlier outlook for the closing months of 2026.
Current Oil Prices Far Above Earlier Estimates
Despite the revised forecasts, current market prices remain considerably higher. As of Friday morning, Brent crude was trading at roughly $100.36 per barrel, while West Texas Intermediate crude had climbed above $95.32 per barrel.
Hormuz Disruption Fuelling Market Turbulence
Global oil markets have become extremely unstable as traders react both to Trump’s statements and to the continuing disruption in the Strait of Hormuz.
The strategic maritime passage handles nearly one-fifth of the world’s oil shipments, making any disruption there a major risk for international energy supplies.
As military tensions continue to rise in the region, analysts warn that the energy market could remain volatile in the coming weeks.
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