DRILL, BABY, DRILL đą
Trump lit up Truth Social with a blunt order:
âKEEP OIL PRICES DOWN. IâM WATCHING.â
The timing is no coincidence. Six supertankers have already turned away from the Strait of Hormuz after new U.S. strikes on Iran. That waterway moves 20% of the worldâs seaborne crude, so any pause there adds an instant risk premium to Brent price đ
Trumpâs math is simple. A $10 move in Brent adds roughly $0.25 to a gallon of U.S. gas. Higher pump prices hit voters, push headline inflation up, and lock the Fed into higher rates. Cheap fuel is a campaign promise he cannot lose.
His playbook: talk prices down, accelerate shale permits, and threaten another Strategic Petroleum Reserve release to keep Brent near $70 and U.S. gas below $3.50.
That's why in his today's post addressing the U.S. Department of Energy he said:
"DRILL, BABY, DRILL!!! And I mean NOW!!!"
đ·đș Across the table, President of Russia, Vladimir Putin is urging OPEC plus to keep supply tight. Russian oil revenue still covers roughly 30% of the federal budget, and costs of war with Ukraine are climbing. Moscow needs oil prices to go up to avoid deeper borrowing.
The funny thing is that, although Iran is an ally of Russia, Russia has an interest in escalating the conflict with Israel and the U.S. in order to push Iran to close the Strait of Hormuz. This would inevitably lead to an oil supply shock and big price pump đ§