President Trump on Monday warned oil-producing nations to keep prices low and directed his administration and U.S. oil producers to immediately boost domestic production as the world prepared for potential retaliation from Iran following the U.S. bombing of its nuclear sites.
Iran could choose to block the Strait of Hormuz, located south of its territory, through which a quarter of the world’s oil supply passes. The country might also deploy mines in the strait, potentially driving up oil prices. “Everyone, keep oil prices down. I’m watching! You’re playing right into the hands of the enemy. Don’t do it!” Trump warned on his Truth Social platform.
He then instructed the Department of Energy, “DRILL BABY DRILL. And I mean NOW!” The president campaigned last year promising to tap into U.S. oil fields to lower energy costs. He argued that once energy prices fell, overall inflation would decrease as companies saved money throughout the supply chain.
On Saturday, President Trump ordered strikes on three nuclear sites in Iran, an oil-rich nation, aiming to end the conflict with Israel and neutralize the Islamic Republic’s nuclear capabilities in the region. So far, oil prices have remained relatively stable, as investors remain hopeful for a gradual de-escalation.
Kevin Hassett, director of the White House National Economic Council, told CNBC that he has observed minimal disruption in the oil markets. Hassett noted that other oil-producing countries hold substantial reserves, giving President Trump “room to adjust” if Iran’s retaliation drives prices higher. Meanwhile, Wall Street traders appeared unfazed by the conflict, with stocks rising on Monday to open the trading week.
Reports on Monday noted that Iran fired at least six missiles at a U.S. military base in Qatar after DHS Secretary Kristi Noem issued a nationwide terrorism alert for America on Sunday, specifically citing low-level cyber attacks as a potential response.
“The ongoing Iran conflict is causing a heightened threat environment in the United States,” a Department of Homeland Security press release said. “Low-level cyber attacks against US networks by pro-Iranian hacktivists are likely, and cyber actors affiliated with the Iranian government may conduct attacks against US networks.
“The likelihood of violent extremists in the Homeland independently mobilizing to violence in response to the conflict would likely increase if Iranian leadership issued a religious ruling calling for retaliatory violence against targets in the Homeland. Multiple recent Homeland terrorist attacks have been motivated by anti-Semitic or anti-Israel sentiment, and the ongoing Israel-Iran conflict could contribute to US-based individuals plotting additional attacks,” it added.
