President Donald Trump Vows Reprisal Against Iran as Global Oil Prices Surge Above $90 a Barrel
Global oil prices rose significantly, crossing the $90 per barrel mark following an Iranian attack on tankers in the Strait of Hormuz. The Islamic Revolutionary Guard Corp reported hitting tankers under U.S. military escort, causing a sharp decline in maritime traffic. In response, President Donald Trump stated that the U.S. will hit Iran hard, signaling a potential escalation in the conflict. Market reactions were swift, with major stock indexes plummeting as investors reacted to the supply shocks. The Dow Jones Industrial Average fell 2.1%, marking its worst day since April 2025. Meanwhile, the Federal Reserve, led by Fed Chair Kevin Warsh, maintained steady interest rates while committing to combat elevated inflation caused by energy costs. Industry leaders like Chevron CEO Mike Wirth and Exxon CEO Darren Woods expressed concern over the region's supply stability. They emphasized the need for the Strait of Hormuz to reopen to ensure consistent oil flows for global economic growth. Investors are also weighing a bipartisan sanctions bill that includes a call from President Donald Trump to impose tariffs on Iran.