Trump says Operation Epic Fury will ‘lower oil prices’ for Americans by stopping attacks on vessels

DORAL, FLORIDA: President Donald Trump on Monday, March 9, stressed the impact of ongoing strikes on Iran and their potential effect on oil prices for Americans as the United States entered its second week of military action.

Iran’s military establishment has warned it may “set fire” to any vessels attempting to pass through the Strait of Hormuz, the world’s busiest oil shipping route, a move that has heightened market concerns and pushed oil prices higher. 

Trump outlines goals of Iran strikes and oil strategy

During the news conference in Doral, Trump said the operation was aimed at ending threats posed by Iran and its allies. 

“In recent years, the regime and its te**or proxies have launched attacks on hundreds of commercial vessels,” he claimed, before stressing, “We're putting an end to all of this threat once and for all, and the result will be lower oil prices, oil and gas prices for American families. We've done that. We've done it. We brought it very low.”

Trump described the military action as necessary and said the campaign was nearing completion: “This was just an excursion into something that had to be done. We're getting very close to finishing that, too."

He added that during what he called a “brief disruption,” the US is also "offering political risk insurance to any tankers operating in the Gulf. So we're putting up risk insurance. We'll perhaps go alongside them for protection. We don't think it'll be necessary.”

Trump warned of severe consequences if tanker traffic were targeted, “If it is, and if they do anything, the price will be incalculable. It will be so great that they will have wished they never did it because you have to keep the straits flowing.”

The president also argued that disruptions would affect other countries more than the US, “With all of that, it affects other countries much more than it does the United States. Doesn't really affect us. We have so much oil. We have tremendous oil and gas much more than we need.”

Trump on relationship with Venezuela and China

At the news conference, Trump shared that the US had developed energy cooperation with Venezuela: “We have Venezuela now as our new partner, great partner. They've worked out so wonderful. We're working with the administration, the president, and it's a massive source of oil, gas, everything.”

He also referenced China’s reliance on shipping routes in the region and his relationship with its leader. “Very unfair to other parts of the world, like China, as an example… They get a lot of their oil through the straits. So we're doing this. We have a very good relationship with President Xi in China. I'm going there in a short period of time.”

Oil prices and stock markets experience sharp movements 

Oil prices and financial markets experienced sharp movements following the escalation and the president’s comments. After surging as much as 32% overnight to $119 per barrel, the price of US crude oil later fell around 5% to about $86 per barrel by 4 pm. International Brent crude oil also dropped by more than 3.5% to less than $89 per barrel.

US equity markets also reversed earlier losses. The S&P 500, which had fallen by as much as 1.5% during the day, ended higher by 0.83%. 

Trump said the administration is also temporarily easing some sanctions to help stabilize prices. “We're also waiving certain oil-related sanctions to reduce prices. So we have sanctions on some countries. We're going to take those sanctions off till this straightens out,” he informed.

The White House said it remains closely engaged with agencies on the issue. Spokeswoman Taylor Rogers said, “President Trump and his entire energy team have had a strong game plan to keep the energy markets stable well before Operation Epic Fury began, and they will continue to review all credible options.”