The broad view of the US President Donald Trump’s first administration as exclusively told to OilPrice.com at the time by a senior legal figure in that team was: “We’re not going to put up with any more crap from the Saudis.”
Oil fell as U.S. President Donald Trump reignited his global trade war, while his latest plan to pressure Russia into a ceasefire with Ukraine didn’t include new measures aimed directly at hindering Moscow’s energy exports.
West Texas Intermediate advanced almost 3% to settle above $68 a barrel after President Donald Trump said he plans to make a “major statement” on Russia on Monday and reiterated criticism of President Vladimir Putin. One sanctions bill, which at least 85 senators have endorsed, would levy 500% tariffs on China and India if they make any purchases of Russian energy.
U.S. shale oil producers are unlikely to heed President Donald Trump’s latest call to “Drill, Baby, Drill” as they prioritize hedging over ramping up production in response to U.S. military strikes on Iran.
While China hasn’t officially purchased Iranian barrels since June 2022, third-party data providers and traders signal flows have been resilient despite broad US sanctions. That’s because the Chinese have built a supply chain outside of western control, which includes dark fleet ships and yuan-denominated payments, supporting imports of more than 1 million barrels a day.
Many questions remain, including the state of Iran’s uranium stockpile and whether any ceasefire will lead to discussions about Tehran’s nuclear program. The Islamic Republic, which has denied it’s seeking an atomic weapon, has refused to give up the right to enrich uranium, a condition the US has insisted upon.
Trump, who is scheduled to attend a national security meeting in the Oval Office on Friday, has publicly mused for days about having the US increase the stakes by joining Israel’s strikes on Iran. His latest stance signals a step back after a run of tough rhetoric, including demands for residents of Tehran to evacuate, and his early departure from this week’s Group of Seven summit in Canada to return to Washington.
White House Press Secretary Karoline Leavitt read a statement from President Trump saying he’s weighing his options based on the potential for diplomacy with Tehran. The President’s position amounts to maybe peace, maybe war, maybe nothing. In the meantime, Israel has already escalated, bombing Iranian nuclear sites Thursday, and Iran has fired back with drones and missiles following a deadly strike on an Israeli.
Crude oil prices continued higher today as the war between Israel and Iran continued unabated, fuelling worry that oil supply from the biggest exporting region may be under threat of disruption.
The Trump administration is moving to repeal Biden-era curbs blocking oil drilling across most of the mammoth petroleum reserve in Alaska that’s home to an estimated 8.7 billion barrels of recoverable oil.