Trump Administration Actions Trigger Global Energy Crisis

Donald Trump has overseen significant stock market growth across two terms, though his second term has been defined by geopolitical conflict and extreme volatility. Since January 20, 2025, the administration has implemented sweeping global tariffs and conducted several high-profile military interventions, including the bombing of nuclear facilities in Iran in June 2025 and the removal of Venezuelan President Nicolas Maduro in January 2026.

Following military operations against Iran in February 2026, Iran closed the Strait of Hormuz. This action halted approximately 20 million barrels of petroleum liquids per day, resulting in the largest energy supply disruption in modern history.

These events have contributed to persistent inflation, with Core Personal Consumption Expenditures remaining between 3.3% and 3.4%. While historical data from the Carson Group indicates the S&P 500 typically recovers after market shocks, analysts note that energy supply disruptions of this magnitude have historically led to significant losses.