Trump Launches Operation Epic Fury to Shift Global Oil Flows

Donald Trump is implementing a strategy known as Operation Epic Fury to shift global energy flows away from the Strait of Hormuz and the Persian Gulf toward the Gulf of Mexico. The initiative seeks to gain U.S. control over the marginal barrel of oil by encouraging nations to reduce purchases from the Middle East and increase business with the United States.

This shift is already manifesting in maritime data, with the number of oil tankers traveling to the U.S. via the Gulf of Mexico increasing by more than 50% on a month-to-month basis. The surge in demand is stimulating domestic infrastructure, including the start of construction on a new oil refinery in Brownsville, Texas, the first new refinery built in the U.S. in 50 years.

The strategy coincides with significant volatility in Middle Eastern production. OPEC oil production saw its steepest monthly decline in at least 40 years in March, dropping by 7.88 million barrels a day due to regional conflicts affecting exports from Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait. Analysts expect the U.S. strategy to cause further drops in OPEC output, potentially around 25%, which may leave European Union countries vulnerable due to their reliance on Middle Eastern crude. Market analysts predict these domestic developments could push oil prices below $80 a barrel within two months.