President Donald Trump stated that the rising global oil prices have increased US revenues as the world's largest oil producer but emphasized that the highest priority remains preventing Iran from developing nuclear weapons, amid economic concerns and rising energy prices triggered by the Middle East conflict.
President Donald Trump announced last Thursday a complete shift in his stance regarding the surging oil and natural gas prices following military tensions with Iran. He said that as the world's largest oil producer, higher oil prices translate into huge profits for the country.
Trump posted on his personal social media, "The US is the world's largest oil producer, so when oil prices rise, we make a lot of money." However, he stressed that the top priority now is not energy prices but stopping Iran from possessing nuclear weapons.
Trump's latest position is seen as a political "reversal," since last month in his annual policy statement, he boasted about oil prices being $2.30 per gallon, whereas now the national average price has surged over 50% to $3.60 per gallon, according to AAA data.
Meanwhile, the global benchmark crude oil price surpassed $100 per barrel on Thursday (12 Mar), amid severe volatility caused by the closure of the strategic shipping route through the Strait of Hormuz, a key global energy transit point.
Investment bank Goldman Sachs warned that the rising oil prices will lead to more severe inflation, slower economic growth, and could increase unemployment rates by the end of this year.
The Trump administration still faces questions about plans to secure shipping routes. Energy Secretary Chris Wright acknowledged that the conflict has caused severe short-term disruptions to energy prices and that it remains unclear when the US Navy will begin escorting oil tankers through the Strait of Hormuz, explaining that all forces are currently focused on degrading Iran’s attack capabilities.
To ease the energy price surge, Trump announced plans to coordinate with international partners to release 172 million barrels from strategic oil reserves. However, economists view this measure as only temporarily "stabilizing" the market and unable to halt the upward price trend.
Additionally, the White House is considering temporarily waiving requirements under the Jones Act to allow non-US-flagged vessels to transport energy and agricultural goods between domestic ports more easily, aiming to prevent shortages of essential supplies.
Trump's stance comes ahead of the November midterm elections, a period when rising oil prices typically negatively impact the popularity of the incumbent government.