President Donald Trump has urged the US and other oil-producing nations to increase oil production in response to volatile crude prices following strikes on Iranian nuclear facilities.
The call for increased production comes as the White House issued strong warnings to Iran against closing the Strait of Hormuz, a crucial shipping lane for oil and gas, in retaliation for the US strikes on Iran’s nuclear program.
“To the Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!” Mr. Trump posted on social media.
He added: “EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!”
Mr. Trump’s push for increased oil production comes at a precarious time, with US embassies and military installations in the Middle East on high alert for potential retaliatory actions.
Global markets are assessing the potential consequences in the aftermath of the US strikes on key Iranian nuclear facilities, which involved 30,000-pound bunker-buster bombs and Tomahawk missiles.
Iran’s parliament has approved a measure to potentially close the Strait of Hormuz, a narrow waterway in the Persian Gulf through which approximately 20% of global oil and gas shipments pass.
The decision of whether to proceed with this action now rests with Iran’s national security council. Such a move could potentially trigger a surge in the cost of goods and services worldwide.
The price of oil initially jumped 4% after trading commenced on Sunday night but subsequently retreated as attention shifted from the US military action to potential Iranian reactions.
Oil futures experienced fluctuations in Monday morning trading, oscillating between gains and losses. However, they remain elevated compared to levels before the recent escalation of hostilities that began just over a week ago.
White House press secretary Karoline Leavitt reiterated warnings to Tehran against closing the Strait, asserting that “the Iranian regime would be foolish to make that decision.”
The State Department has doubled the number of emergency evacuation flights available to American citizens seeking to depart Israel and has ordered the departure of nonessential personnel from the US Embassy in Lebanon.
The department is also intensifying travel advisories across the Middle East due to concerns that Iran may retaliate against US interests in the region.
In a worldwide security alert issued to all Americans abroad on Sunday, the State Department urged all US citizens to exercise caution.
The US Embassy in Qatar issued an alert on its website on Monday, advising American citizens in the energy-rich nation to “shelter in place until further notice.”
Hours later, the Qatari government issued an unusual order to shut down its normally busy airspace.
Qatar, situated across the Persian Gulf from Iran, hosts Al Udeid Air Base, which serves as the forward headquarters for the US military’s Central Command.
Many energy industry analysts are skeptical that Iran will proceed with a full closure of the Strait, a measure it has threatened in the past.
Iran would risk retaliation against its own shipments and potentially alienate China, its largest purchaser of crude oil.
