Trump Flags Risk to Global Oil Supply Amid Rising Tensions Near Hormuz

Washington — Donald Trump has warned of possible disruptions to global oil supplies, citing mounting tensions and heavy naval activity around the strategically crucial Strait of Hormuz.

Speaking at an event in Palm Beach, Trump pointed to severe congestion in the Gulf corridor, describing hundreds of vessels clustered in the region. He indicated that US naval operations had effectively tightened control over the route, even likening the situation to a blockade.

According to Trump, several oil tankers are currently stranded, unable to pass through the narrow strait, leading to a buildup of ships waiting for clearance. He also suggested that some shipping flows are being diverted, with vessels reportedly heading toward the US, particularly Texas, to load cargo instead.

Despite the bottlenecks, Trump maintained that global supply remains sufficient and predicted that oil prices could fall sharply once normal movement resumes. He also linked ongoing military actions to broader economic outcomes, claiming that the costs of conflict were being offset.

At the same time, he acknowledged the unpredictability of the situation, noting that developments tied to conflict can shift rapidly. He reiterated that US measures are aimed at curbing Iran’s economic capabilities, particularly its energy exports.

Trump emphasized that strong domestic production in the US would help cushion any supply shock, adding that the country is producing oil and gas at record levels. However, he did not rule out prolonged uncertainty, indicating that the outcome of negotiations remains unclear.

The developments are being closely monitored by global markets, as the Strait of Hormuz handles a significant portion of the world’s oil trade. Any sustained disruption could tighten supply chains and push up energy prices.

For countries like India, which rely heavily on crude imports from the Gulf, stability in this shipping corridor is critical. Extended disruptions could increase freight costs, delay supplies, and add to inflationary pressures domestically.

With inputs from IANS