Trump pushes oil producers to pump more crude amid fears Iran may close shipping lane
White House warned Iran against closing the Strait of Hormuz in retaliation for US strikes on Iran’s nuclear programme
US President Donald Trump on Monday called for the US and other oil-producing economies to pump more oil as crude prices remain volatile following US strikes on Iranian nuclear facilities.
The push by Trump comes at an uncertain moment as US embassies and military installations in the Middle East are on high alert for potential retaliation. Global markets are trying to ascertain what lies ahead after the US struck key Iranian nuclear facilities with a barrage of bunker-busting bombs and Tomahawk missiles.
Iran’s parliament has approved cutting off the Strait of Hormuz, a narrow shipping lane in the Persian Gulf through which about 20 per cent of global oil and gas passes. It is now up to Iran’s national security council to decide whether to move forward with the idea, which could lead to a spike in the cost of goods and services worldwide.
Many energy industry analysts are sceptical that Iran would go forward with a full closure of the strait, something that it has threatened to do in the past.