President Donald Trump Says He Is Considering Seizing Strait of Hormuz
Key Takeaways
- Trump said he was considering seizing control of the Strait of Hormuz
- U.S. crude fell 6.19% to $85.27; Brent fell 4.6% to $88.43 after comments
- Strait of Hormuz is the world's most important crude oil chokepoint
Trump's statement and markets
President Donald Trump told CBS News he was "thinking about taking it over" when asked about the Strait of Hormuz, saying ships are moving through the chokepoint and indicating he thought the war would soon be over.
“Oil prices fell Monday in extended trading after President Donald Trump said he was considering seizing control of the Strait of Hormuz, the most important chokepoint in world for the crude market”
His comments coincided with trading moves in oil markets, where U.S. crude oil was down 6.19% to $85.27 per barrel in extended trading as markets reacted to his statement and related developments.
Benchmark price volatility
Oil benchmarks showed extreme volatility as the Strait-related disruptions intensified.
West Texas Intermediate futures had closed 4.26% higher at $94.77 after surging as high as $119.48 overnight.
Brent traded lower in extended hours but had earlier advanced to settle at $98.96 after hitting $119.50, reflecting both initial risk-premium spikes and subsequent market adjustments.
Supply disruption scope
The closure and threats around the Strait have caused what analysts called the largest oil supply disruption in history, with roughly 20% of global exports normally transiting the waterway.
“Oil prices fell Monday in extended trading after President Donald Trump said he was considering seizing control of the Strait of Hormuz, the most important chokepoint in world for the crude market”
Gulf producers have cut output and storage is filling, and only a handful of commercial vessels are transiting due to Iran-related threats.
These factors have amplified pressure on markets and logistics.
Producer cuts and policy response
Regional producers and international policymakers moved to respond.
Kuwait announced precautionary production and refinery cuts citing "Iranian threats against safe passage of ships through the Strait of Hormuz."
Iraq's southern output collapsed by around 70% and the G7 planned a virtual meeting of energy ministers to discuss possible coordinated releases from strategic reserves.
G7 finance ministers said they were "ready to take necessary measures" to support energy supply.
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