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Oil Price Spike Reverses As President Trump Urges Tankers Into the Strait of Hormuz

Oil Price Spike Reverses As President Trump Urges Tankers Into the Strait of Hormuz
AP Photo/Mark Schiefelbein

President Trump helped calm a sudden surge in oil prices on Monday after crude briefly climbed above $100 a barrel before falling to around $87 by the end of the day. 

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The spike came as oil companies hesitated to send tankers through the Strait of Hormuz, a critical passageway that carries roughly 20 to 30 percent of the world’s seaborne oil each day. 

Firms feared potential losses and security threats from Iranian forces amid Operation Epic Fury. Trump, however, urged tanker operators to show some “guts” and continue using the strait, noting that Iran’s navy had been largely destroyed. Soon after, tankers began moving through the waterway again, often switching off their transponders while passing through and turning them back on once they cleared the strait.

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On Monday, the president said oil prices would drop rapidly once Operation Epic Fury is complete. As of Tuesday, the world may not have to wait that long, with crude hovering around $87 a barrel.

Editor's Note: For decades, former presidents have been all talk and no action. Now, Donald Trump is eliminating the threat from Iran once and for all. 

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