Oil prices surged sharply on Thursday following reports that US President Donald Trump is considering fresh military action against Iran to break the deadlock in the Strait of Hormuz. Brent crude futures for June rose $5.27, or 4.5 per cent, to $123.30 a barrel, after gaining 6.1 per cent in the previous session.
Trump's Social Media Post and Ultimatum
Trump earlier shared an image on Truth Social depicting a map of the Strait of Hormuz with the phrase “Strait of Trump” across the vital oil passageway. He urged Tehran to “get smart soon” and sign a deal, writing: “Iran can’t get their act together. They don’t know how to sign a non-nuclear deal. They better get smart soon!”
Naval Blockade Intensifies
The US military announced on Wednesday that it has redirected 42 ships attempting to pass its naval blockade of Iranian ports. US Central Command stated: “There are 41 tankers with 69 million barrels of oil that the Iranian regime can’t sell. That’s an estimated $6 billion-plus from which Iran’s leadership cannot financially benefit.”
Trump also reshared a post on Truth Social bearing the message “The Storm is Coming,” alongside “Nothing can stop what is coming.” In a separate post, he cited a Harvard Harris poll claiming a strong majority of Americans support his stance on stopping Iran’s nuclear program.
Cost of War and Diplomatic Tensions
A senior Pentagon official revealed that Trump’s war in Iran has cost the US military $25 billion so far, mostly for munitions. Defence Secretary Pete Hegseth told lawmakers the cost is justified to prevent Iran from obtaining a nuclear weapon. Meanwhile, Iran’s parliamentary speaker Mohammad Bagher Ghalibaf mocked the Trump administration, suggesting oil prices could reach $140.
The UN nuclear agency’s leader, Rafael Grossi, said most of Iran’s highly enriched uranium is likely still at the Isfahan nuclear complex, which was bombarded by airstrikes last year. IAEA inspections ended at Isfahan when Israel launched a 12-day war in June 2025 that saw the US bomb three Iranian nuclear sites.
White House Meeting and Military Briefing
Trump met with oil and gas executives, including Chevron CEO Mike Wirth, at the White House on Tuesday to address the energy fallout of the Iran war. White House chief of staff Susie Wiles, Treasury Secretary Scott Bessent, and envoys Steve Witkoff and Jared Kushner were present. Trump is also slated to receive a briefing on new plans for potential military action in Iran from US Central Command leader Brad Cooper.
Additionally, Trump threatened to reduce US troop numbers in Germany after clashing with German chancellor Friedrich Merz over the Iran war. The USS Ford aircraft carrier, the largest in the world, is set to return to its home port in Virginia by mid-May after deployment in the Middle East.
