President Trump urges oil producers to keep prices low

US President Donald Trump has asked oil producers and markets to maintain or lower prices against the backdrop of renewed disruptions in the Strait of Hormuz, a global oil transit route. “Everyone should keep oil prices down. I’m watching. You’re playing right into the hands of the enemy. Don’t do it,” the president wrote on Truth Social.

Iran’s parliament had voted to shut down the Strait of Hormuz, a narrow maritime chokepoint through which about 20% of the world’s crude oil passes.

BREAKING: President Trump says everyone should "keep oil prices down" and that he is "watching."

Trump says, "You're playing right into the hands of the enemy. Don't do it." pic.twitter.com/XMPkRZwJej

— The Kobeissi Letter (@KobeissiLetter) June 23, 2025

West Texas Intermediate (WTI) crude oil futures rose as much as 2.7% on Monday before settling around $74.68 per barrel, up 84 cents or 1.14%. Brent crude futures were trading at $77.86, marking an increase of 85 cents or 1.1% by late morning in London. 

“Iran may choose to target tanker traffic in the Strait as a form of retaliation,” said Saxo Bank analyst Ole Hansen. “All eyes remain on the Strait of Hormuz and what happens next.”

Trump, meanwhile, has directed the US Department of Energy to ramp up domestic production. “Drill, baby, drill. And I mean now,” he posted on social media, in line with his administration’s inflation-control strategy centered on keeping energy costs low.

Tanker traffic spells disruption

According to Yui Torikata, senior liquid market analyst at the firm, at least six vessels altered their routes between Sunday and Monday to avoid entering the Strait of Hormuz. These included two very large crude carriers, three chemical tankers, and one refined products carrier.

“All vessels were in ballast, meaning they were either empty or carrying light loads,” Torikata said. Ship-tracking data compiled by Bloomberg showed that 44 oil carriers passed through the Strait of Hormuz on Sunday, evenly split between inbound and outbound traffic.

She noted that three of the six ships, South Loyalty, COSWISDOM Lake, and Damsgaard, have since reversed course again and are now heading back toward the Strait. The remaining three are idling near Khor Fakkan and Muscat.

“This specific weekend event should be seen in a broader context,” Torikata explained. “The number of available empty crude carriers in the Gulf hit a record low, suggesting that shipowners were reluctant to enter the zone. But that trend began to reverse by the weekend.”

She added that the number of crude tankers contemplating entering the region from the Gulf of Oman had recovered from its low point on June 16.

Frontline collision and insurance could cause supply disruption

Per a CNBC report, there was a collision near the Strait involving the Frontline-operated Front Eagle and a dark fleet tanker named Adalynn. The incident resulted in a fire aboard the Front Eagle, which was later extinguished. Market watchers believe that such incidents, along with ballooning insurance costs, could discourage more shipowners from operating in the area.

“Some owners will simply avoid the area altogether,” said energy analyst Andy Lipow, asserting that Frontline has already suspended new contracts involving passage through the Strait of Hormuz. 

“This causes a de facto partial supply disruption if there’s a lack of tankers to carry the oil that needs to be exported.”

Lipow also mentioned geopolitical pressure from China, which purchases about 90% of Iran’s crude oil. 

“Some tanker owners may feel that China is pressuring Iran not to disrupt shipping. But if cornered, Iran might choose to inflict economic pain by targeting global oil supply,” he concluded.

White House keeps diplomatic channels open

Speaking in a Fox News interview on Monday, White House Deputy Press Secretary Karoline Leavitt stated that President Trump is open to diplomatic engagement with Iran despite the recent military action. 

According to Leavitt, Trump is not backing away from a diplomatic route but is “raising a question that many people around the world are asking.”

“The president believes the Iranian people can control their own destiny,” Leavitt reckoned. “If the Iranian regime refuses to come to a peaceful diplomatic solution, which the president is still pursuing, then why shouldn’t the Iranian people seek to take away the power of a violent regime that’s suppressed them for decades?”

She also revealed that the US military posture is unchanged and described Saturday evening’s airstrikes as “decisive precision strikes” that were “successful.” 

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