Trump Deploys Military Force Against Iran and Venezuela

President Donald Trump authorized military force against Iran and Venezuela through initiatives including Operation Epic Fury. The administration launched these operations as part of a strategy to use U.S. energy dominance for economic and diplomatic leverage after sanctions failed to produce desired results in a market plagued by shadow fleets.

The conflict resulted in the closure of the Strait of Hormuz, which triggered global fuel shortages and pushed U.S. gasoline prices above $4 per gallon. To combat inflation and voter dissatisfaction, the Trump administration drained the Strategic Petroleum Reserve, waived Jones Act shipping regulations, and ended summer gasoline blending requirements ahead of schedule.

While the U.S. faced price volatility and low public approval for the war, the Government of China mitigated the market impact. China deployed its own oil stockpiles and utilized its electric vehicle fleet to reduce demand, cutting imports by approximately 5 million barrels a day in June.