Trump calls for increased oil production; prices fall

WASHINGTON - US President Donald Trump on Monday urged the United States and other oil-producing economies to pump more crude oil as prices remain volatile following US attacks on Iranian nuclear facilities.

Trump demanded increased production as the White House stepped up its warnings to Iran against closing the Strait of Hormuz , a vital shipping route for oil and gas, in retaliation for U.S. attacks on Iran's nuclear program.

“To the Department of Energy: DRILL, GUYS, DRILL!!! And I say NOW!!!” Trump posted on social media. He added: “EVERYONE, KEEP OIL PRICES LOW. I AM WATCHING! YOU ARE PLAYING INTO THE ENEMY’S HANDS. DON’T DO IT!”

Trump's orders come at an uncertain time, as U.S. embassies and military installations in the Middle East are on high alert for possible Iranian retaliation. Global markets are trying to determine what will happen after the U.S. attacked key Iranian nuclear facilities with a barrage of 30,000-pound bunker-buster bombs and Tomahawk missiles .

Iran's parliament has approved the closure of the Strait of Hormuz , a narrow waterway in the Persian Gulf through which approximately 20% of the world's oil and gas passes. It is now up to Iran's National Security Council to decide whether to pursue the idea, which could lead to higher costs for goods and services worldwide.

🛢️ | URGENT: Oil prices are plummeting. pic.twitter.com/tB0LgOFBNw

— Alerta News 24 (@AlertaNews24) June 23, 2025

Brent crude oil has moderated its price increase for the time being, falling by around 1% after soaring overnight, while Texas Intermediate crude opened this Monday with an increase of around 0.2%.

Oil prices rose 4% shortly after trading began Sunday night, but quickly fell as the focus shifted from what the U.S. military did to how Iran would react.

Oil futures fluctuated between gains and losses in Monday morning trading. They remain higher than they were before the fighting began just over a week ago.

Oil prices plummeted more than 5% on Monday following Iran's response to the US attack on its nuclear facilities.

A barrel of Brent crude , which reached $81.40 early Monday morning, marking its highest level since late January, was trading at $73.10 at 5:30 p.m. GMT, a drop of more than 5% for the European benchmark.

Meanwhile, the barrel of West Texas Intermediate (WTI), the benchmark in the US, had accumulated a 5% decline at the same time and its price was around $70 .

Many energy industry analysts are skeptical that Iran will proceed with a complete closure of the strait, something it has threatened to do in the past.

Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), so its supply could be affected by this closure.

If Iran does so, it faces the possibility of retaliation against its own shipments and the possibility that the move could anger China , the largest buyer of Iranian crude.

“There have been many suggestions that this isn’t incredibly likely, and that’s generally attributed to economic interdependence, which I don’t want to suggest doesn’t matter. It absolutely matters,” said Colby Connelly, a senior fellow at the Middle East Institute. Connelly added: “If the 2020s have taught us anything so far, it’s that economic ties don’t always prevent conflict.”

Onyx Capital Group's head of research, Harry Tchilinguirian, explained to Bloomberg that this attack is "well orchestrated" by Iran, as it "attacks an empty US base with enough advance warning of the airspace closure and directs it to take cover."

“Iran manages to save face,” Tchilinguirian sums up.

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