Oil Surges Past $100 as Trump Defends Iran War Decision

Oil prices surged beyond $100 a barrel on Sunday, the first time in almost four years, as fears intensified that the expanding conflict in the Middle East could lead to long-term supply disruptions.

The two global oil benchmarks — Brent and West Texas Intermediate (WTI) — jumped more than 15 percent when markets opened Sunday evening, reaching levels last seen during the early phase of Russia’s 2022 war in Ukraine.

However, US President Donald Trump defended the spike in prices, saying it was a minor cost compared with the goal of eliminating Iran’s nuclear capability.

“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” Trump wrote on social media.

“ONLY FOOLS WOULD THINK DIFFERENTLY!” he added.

Shipping in the Strait of Hormuz, a key maritime route carrying around 20 percent of global crude oil and gas, has largely stopped since the war erupted on February 28.

At the same time, energy producers in Gulf countries have begun reducing output, while Israeli attacks on fuel depots in Tehran have heightened fears that Iran could retaliate by targeting energy facilities across the region.

The surge in oil prices has already begun to push petrol prices higher in the United States, an issue that is expected to become politically sensitive ahead of November’s midterm elections.

US officials expect disruption to be brief

Despite the market shock, US officials say the disruption to oil supply may not last long.

Speaking to CNN, US Energy Secretary Chris Wright said the worst-case scenario would be short-lived.

“Worst case, that’s a few weeks. That’s not months,” he said.

Wright also told CBS that global oil supply remained strong.

“They shouldn’t go much higher than they are here because the world is very well supplied with oil,” he said. “There’s no energy shortage in all of the Western hemisphere.”

He added that the US government was already in talks with shipping companies attempting to move vessels safely out of the Gulf.

According to Wright, initial tanker movements could involve direct protection from the US military while passing through the Strait of Hormuz.

“Early tankers probably will involve some direct protection by the US military,” he said, expressing confidence that maritime traffic could return to normal “relatively soon.”

Iran contributes roughly four percent of global oil output, according to the US Energy Information Administration.

Although the country’s oil sector remains under international sanctions, some exports continue, mainly to China.

Meanwhile, US Treasury Secretary Scott Bessent said Friday that Washington was considering lifting sanctions on additional Russian oil, a move that came a day after the United States temporarily allowed India to purchase crude from Moscow as global prices climbed.

In a separate measure, the US International Development Finance Corporation announced the creation of a $20 billion reinsurance mechanism designed to cover risks linked to shipping through the Strait of Hormuz.

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