Global oil prices crossed $100 per barrel Thursday, and President Trump’s response was essentially: it is worth it. In a Truth Social post, Trump stated that halting Iran’s nuclear weapons program is more important to him than any disruption to oil markets, including the historic supply shock currently gripping the global economy. The remarks came as the International Energy Agency described the oil market disruption caused by the US-Iran conflict as the largest ever recorded.
Gulf producers have cut output by approximately 10 million barrels per day, close to 10% of world demand. The Strait of Hormuz has been effectively closed by the conflict. Brent crude rose as much as 10% Thursday to briefly exceed $100 per barrel, while West Texas Intermediate approached $96 before easing. The IEA coordinated the release of 400 million barrels of emergency crude from member nation reserves, and the US pledged 172 million barrels from its Strategic Petroleum Reserve.
Trump’s Truth Social message made an explicit argument that higher oil prices are not straightforwardly bad for the United States. As the world’s largest oil producer, America earns more revenue as crude prices climb, he wrote. That said, he continued, his far greater concern is preventing Iran — which he labeled an evil empire — from developing nuclear weapons that could bring destruction to the Middle East and the broader world.
The argument is politically and strategically calibrated. By presenting the energy crisis as financially beneficial to the US, Trump seeks to neutralize domestic criticism of the conflict’s economic costs. By framing the nuclear threat as the overriding priority, he justifies the continuation of military operations regardless of market conditions. Both arguments, however, have attracted scrutiny, with analysts noting that the US economy is not immune to the effects of $100 oil.
Trump told reporters Wednesday that American forces have struck Iran with almost unparalleled force and are not done. He also expressed no worry about an Iranian attack on US soil. Markets remain volatile and no diplomatic resolution is in sight, leaving the global economy to grapple with a conflict that its largest instigator has signaled will continue until its own conditions are met.
