Trump Defends Oil Price Surges Amid War with Iran

A high-intensity military conflict known as Operation Epic Fury, launched by the United States and Israel on February 28, 2026, triggered a massive global energy shock. The campaign, which targeted Iranian nuclear sites and fuel depots in Tehran and Karaj, reportedly killed Supreme Leader Ali Khamenei. In response, Iran effectively blocked the Strait of Hormuz—a critical conduit for 20% of global oil—and launched retaliatory strikes on energy infrastructure in Bahrain, Qatar, Saudi Arabia, the UAE, and Kuwait.

Crude oil prices surged violently, with Brent and West Texas Intermediate benchmarks peaking near $120 per barrel, their highest levels since 2022. This drove U.S. national gasoline averages up nearly 50 cents in one week to approximately $3.48 per gallon, while diesel prices jumped over 80 cents. Global stock markets crashed, particularly in Asia, as investors feared stagflation and prolonged supply disruptions. In Iran, Mojtaba Khamenei was appointed as the new supreme leader, signaling a continued hardline stance.

President Donald Trump dismissed the price spikes as a "very small price to pay" for neutralizing the Iranian nuclear threat. He urged tanker captains to "show some guts" by traversing the strait and offered government insurance and naval escorts to secure shipping. While G7 finance ministers and the International Energy Agency discussed a coordinated release of up to 400 million barrels from strategic reserves, the U.S. initially resisted, focusing on sanctions waivers for Russian oil instead.

Markets partially stabilized after Trump stated the war was "very complete, pretty much," following a phone call with Russian President Vladimir Putin. Despite this, analysts warn that long-term damage to infrastructure and seasonal demand could keep prices elevated.