Oil prices spiked and global markets plunged after Donald Trump’s prime-time address to the nation on Wednesday failed to outline a clear path to ending the Iran war. Trump’s speech provided no certainty as he claimed the war was a resounding success but admitted that the US would remain engaged for at least another two to three weeks. Brent crude oil prices jumped nearly 5 percent to $105 per barrel amid fears the US was no closer to eliminating Iran’s stranglehold on the Strait of Hormuz. Futures tied to the Dow dropped 1 percent, the S&P 500 fell 1.1 percent and the Nasdaq slid 1.4 percent. Japan’s Nikkei plummeted 1.9 percent, the first major index to trade after US markets close and a closely watched early signal for investors.
The ‘Deranged Terror’ Defense
Conservative pundit Ann Coulter was among the first to mock the address, sharing a graph of the oil price and writing on X: ‘Trump’s magnificent speech got results! Way to go, Mr. President!’ Trump struck an optimistic tone on the economy but squarely blamed high gas prices and temporary cost hikes on Iran’s retaliatory actions. ‘Many Americans have been concerned to see the recent rise in gasoline prices here at home,’ Trump said. ‘This short-term increase has been entirely the result of the Iranian regime launching deranged terror attacks against commercial oil tankers and neighboring countries that have nothing to do with the conflict.’ Notably, the President did not offer any assurances to allies regarding the Strait of Hormuz, through which a fifth of the global oil transits.
They Should Take the Lead
Since the outbreak of the war, it has been largely sealed off to maritime traffic and oil tankers due to Iranian attacks on commercial vessels since the conflict began. Trump has repeatedly said it needs to be opened, but has also passed the responsibility to other countries to reopen the waterway. ‘The countries of the world that do receive oil through the Hormuz Strait must take care of that passage,’ he said. ‘We will be helpful, but they should take the lead in protecting the oil that they so desperately depend on. Go to the Strait and just take it, protect it, use it for yourselves. Iran has been essentially decimated. The hard part is done,’ Trump said.
That’s All They Have
Trump added that Iran will be forced to allow the Strait to reopen since Iran is ‘going to want to be able to sell oil, because that’s all they have to try and rebuild.’ The national average for a gallon of regular gas stands at $4.06, up from $2.90 before the war began, according to AAA. The speech did not make any mention of using US soldiers on the ground in Iran or remarks about NATO, which had been reported as a topic for Trump’s address. Still, the USS Tripoli arrived in the Middle East on Friday, composed of around 5,000 sailors and Marines distributed across several warships.
They will soon be joined by the San Diego-based USS Boxer amphibious assault ship, and two other vessels comprising the 11th Marine Expeditionary Unit. Also heading to the region are thousands of paratroopers from the 82nd Airborne, who will apparently be accompanied by hundreds of Special Forces. The UAE, which has taken massive barrages of Iranian missiles and drones, is reportedly prepared to deploy troops to help the US seize control of Hormuz, while European allies have insisted that they will not be dragged into the conflict.
