On Monday (March 9), President Trump emphasized that he will not allow Iran to hold the world hostage with oil. He warned that if Iran dares to “attempt to disrupt global oil supplies,” it will face a more severe backlash.
Speaking at a press conference in Florida on Monday, Trump said that the United States is currently holding off on attacking certain power facilities in Iran, but if the Iranian regime does not cooperate, the U.S. will take action against these targets.
Regarding the timing of potential attacks on Iran’s power facilities, Trump stated more explicitly, “I will never allow a terrorist regime to hold the world hostage, attempting to cut off global oil supplies. If Iran dares to do so, they will face a more intense level of retaliation. I will destroy those targets I just mentioned.”
“We will destroy them very quickly to the point where they can never recover,” he said, and warned, “If they (Iran) want to play this game, they better think twice.”
The President reiterated that the United States will ensure that ships can safely pass through the Strait of Hormuz.
“During this brief (oil supply) interruption, the United States will provide political risk insurance for all oil tankers operating in the Gulf,” Trump announced. “If necessary, the U.S. Navy and its partners will escort oil tankers through the strait.”
He added that the U.S. will also waive certain oil-related sanctions to lower oil prices. However, he did not specify which sanctions would be lifted, only mentioning, “We have imposed sanctions on some countries. We will lift these sanctions until the situation improves.”
During the press conference, the President also emphasized that while the interruption of oil transport through the Strait of Hormuz led to a surge in oil prices, in the long term, a war with Iran will eliminate Iran’s threat to global shipping and oil supply, ultimately leading to a decrease in oil prices.
“The Strait of Hormuz will remain secure,” he said. “We will completely eradicate all these threats, resulting in a decrease in oil prices and the prices of oil and natural gas for American households.”
He also stated that if Iran dares to attack any ships passing through the Strait of Hormuz, the “cost will be immeasurable.”
The conflict with Iran led to a sharp increase in oil prices on Monday (March 9), reaching nearly $120 per barrel at one point. However, after Trump told CBS News that he was considering controlling the Strait of Hormuz, oil prices fell in after-hours trading. The Strait of Hormuz is one of the most crucial chokepoints in the global oil market.
At 3:37 pm Eastern Time on Monday, U.S. crude oil prices fell by 6.19% to $85.27 per barrel. Global benchmark Brent crude prices also dropped by 4.6% to $88.43 per barrel.