Former U.S. President Donald Trump issued a call to the global oil market on Monday, urging them to keep oil prices low. "Keep oil prices down! I'm watching closely! You're playing into the enemy's hands. Don't do it!" Trump warned on his social media platform, Truth Social.
Recent U.S. airstrikes on Iranian nuclear facilities and Tehran's threat to close the Strait of Hormuz, a crucial passageway for oil shipments, led to a slight uptick in global oil prices on Monday. In response, Trump also sent a direct message to his Department of Energy: "DRILL, BABY, DRILL!!! And I mean NOW!!!" emphasizing the urgency of increasing domestic oil production.
The Iranian parliament recently approved the potential closure of the Strait of Hormuz, a decision to be enacted when deemed necessary by the Supreme National Security Council, which holds the final authority on the matter. This strategic maritime corridor is vital, transporting 20% of the world's oil and 30% of its liquefied natural gas. Nations like Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait rely heavily on this route for their energy exports, as reported by Reuters.
On Monday, it was reported that Iran had launched several missiles targeting U.S. military bases in the Middle East as a retaliatory measure for the bombings of its nuclear facilities. According to sources familiar with the situation, at least ten missiles were aimed at Qatar, with at least one directed towards Iraq. Both the White House and the Department of Defense acknowledged being aware of "potential threats" to the Al Udeid Air Base in Qatar and are closely monitoring the unfolding events.
Explosions were heard in Doha, Qatar's capital, on Monday night, accompanied by social media videos showing activated air defense systems.
Impact of Geopolitical Tensions on Oil Prices
Why is the Strait of Hormuz important for global oil supply?
The Strait of Hormuz is a crucial maritime corridor through which about 20% of the world's oil and 30% of its liquefied natural gas are transported. It is essential for the energy exports of countries like Saudi Arabia, the UAE, Iraq, and Kuwait.
What was Iran's response to the U.S. airstrikes?
In retaliation for the U.S. airstrikes on its nuclear facilities, Iran launched multiple missiles targeting U.S. military bases in the Middle East, including at least ten aimed at Qatar and one at Iraq.
How did the U.S. react to the potential threats from Iran?
The White House and the Department of Defense confirmed they were aware of potential threats against the Al Udeid Air Base in Qatar and are closely monitoring the situation to respond accordingly.