US President Donald Trump has said that once the Iran conflict ends, there could be a sharp decline in crude oil prices. He says that the current surge is related to war and supply constraints, and as soon as the situation becomes normal, the market will see relief.
Trump asked for help from seven countries
Meanwhile, US President Donald Trump has said that he has demanded to keep the Strait of Hormuz open by sending warships from about seven countries. However, till now no country has made a clear commitment on this. Speaking to reporters while returning to Washington on Air Force One plane, Trump said that this sea route is more important for countries that import oil from West Asia. He said that I am asking those countries to protect their own territory, because it is more important for them. Let us tell you that the Strait of Hormuz is one of the most important sea routes in the world. Generally, about one-fifth of the world’s total traded oil passes through this route. Due to the war, concerns about the safety of this route have increased and oil prices are also rising rapidly.
American oil companies warned
America’s major oil companies have given a serious warning to the Trump administration regarding the ongoing disruption in the Strait of Hormuz amid the Iran war. According to the report of The Wall Street Journal (WSJ), top industry officials have clearly said that if the obstruction in this important sea route continues, the global fuel crisis may deepen further.
Limited scope to increase domestic production in America
Oil industry officials also clarified that the scope for increasing domestic production in the US is limited and it will not be able to compensate for the approximately 9 million to 10 million barrels per day of oil supply stuck behind the Strait of Hormuz. Meanwhile, American oil prices have also increased rapidly. American oil, which was at the level of $ 87 per barrel on Wednesday, increased to $ 99 per barrel by Friday.
