Oil Climbs After Trump Threatens to Sink Iranian Gunboats

25 April 2020

"I have instructed the United States Navy to shoot down [sic] and destroy any and all Iranian gunboats if they harass our ships at sea," Trump wrote in a Twitter message at 0808 Eastern time.

 

At the moment of the tweet, the NYMEX West Texas Intermediate (WTI) front-month contract - the benchmark for American crude oil - was trading at about $11.52 per barrel. It began a rally about 20 minutes later, and by 0945 it had risen about 40 percent to peak at $16.12 per barrel. The increase is believed to reflect investor optimism that instability in the Strait of Hormuz could restrict Persian Gulf oil shipments, thereby reducing supply in a glutted market.

 

As recently as Monday, the WTI was trading in negative territory due to low demand and brimming storage capacity, and it is still valued far below the break-even price for most American producers. This unprecedented, rapid collapse has devastating consequences for the U.S. oil industry.

 

"[Trump's] tweet is likely a . . . response to recent IRGC(N) harassment of the US navy, as well as an attempt to influence events within the oil market," security consultancy Dryad Global wrote in an assessment Wednesday.

 

Air Force Gen. John Hyten, vice chairman of the Joint Chiefs of Staff, told reporters Wednesay that the Pentagon would interpret the president's instructions and translate them into orders. "If we see a hostile act, if we see hostile intent, we have the right to respond up to and including lethal force, and if it happens in the Gulf, if it happens in any way, we will respond with overwhelming lethal force if necessary to defend ourselves," Gen. Hyten said. “The president made a clear statement. I think the Iranians understand that, I think the American people understand that. Now, we as the military have to apply that clear direction from the commander in chief into lawful orders that we execute."

Comments (0)


Today
8:03am
Hi Jenna! I made a new design, and i wanted to show it to you.
8:03am
It's quite clean and it's inspired from Bulkit.
8:12am
Oh really??! I want to see that.
8:13am
FYI it was done in less than a day.
8:17am
Great to hear it. Just send me the PSD files so i can have a look at it.
8:18am
And if you have a prototype, you can also send me the link to it.

Monday
4:55pm
Hey Jenna, what's up?
4:56pm
Iam coming to LA tomorrow. Interested in having lunch?
5:21pm
Hey mate, it's been a while. Sure I would love to.
5:27pm
Ok. Let's say i pick you up at 12:30 at work, works?
5:43pm
Yup, that works great.
5:44pm
And yeah, don't forget to bring some of my favourite cheese cake.
5:27pm
No worries

Today
2:01pm
Hello Jenna, did you read my proposal?
2:01pm
Didn't hear from you since i sent it.
2:02pm
Hello Milly, Iam really sorry, Iam so busy recently, but i had the time to read it.
2:04pm
And what did you think about it?
2:05pm
Actually it's quite good, there might be some small changes but overall it's great.
2:07pm
I think that i can give it to my boss at this stage.
2:09pm
Crossing fingers then

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