Trump Urges Oil Tankers Through Strait of Hormuz Amid Escalating Iran Tensions

President Donald Trump has publicly urged oil companies to resume tanker traffic through the Strait of Hormuz, a critical global oil chokepoint, even as the region remains under active conflict with Iran. The strait, which handles approximately 20% of global oil supplies, has been effectively closed to commercial shipping due to military operations and security threats since early 2026. Trump’s statement, made during a campaign rally in Florida, emphasized national energy dominance and criticized current energy policies for creating vulnerabilities. The call comes amid a sharp spike in volatility across key markets. The CBOE Volatility Index (^VIX) rose 28% within 24 hours to 34.7, reflecting heightened investor anxiety over potential supply disruptions. Crude oil futures (CL=F) surged by $8.60 per barrel, closing at $92.30, the highest level since August 2023. Energy stocks (XLE) followed suit, gaining 5.4% as investors priced in the risk of prolonged supply constraints. The Strait of Hormuz’s closure has already led to rerouting of over 80 million barrels of crude oil through alternative, longer routes, increasing shipping costs by an estimated $1.20 per barrel. Industry analysts warn that forcing tankers through the strait without robust military escort could trigger retaliatory actions, further destabilizing the region. The U.S. Navy has begun deploying additional carrier strike groups to the Persian Gulf, underscoring the growing military footprint. Market participants are now closely monitoring signals from Washington and Tehran. The energy sector, particularly integrated majors with exposure to Middle East operations, faces heightened operational and financial risk. Geopolitical risk premiums are expected to persist, with oil benchmarks likely to remain above $90 per barrel unless de-escalation occurs.