Iranian oil squeeze tests Trump's war plans

"Oil is another matter. No one is panicking, but it's a concern. He's pulling out the stops. There's plenty of oil. It's just getting it on the market that's the thing. Trump has publicly downplayed both the physical danger of traversing the Strait and the war's risk to the economy - while taking steps to address both."

"On Wednesday, he coordinated the largest emergency oil reserve release in history: 400 million barrels globally, including 172 million from the U.S. Strategic Petroleum Reserve. Trump also is discussing plans to supply naval escorts to tankers traversing the Strait and arranging insurance for those vessels - a crucial factor for shippers weighing the risk."

"Iran's attempts to weaponize the oil markets are designed to increase global pressure on Trump and Israel to end the bombing that began Feb. 28. About one-fifth of the world's oil travels through the Persian Gulf. China and India are its biggest consumers, but a sustained disruption ripples across every major economy."

Following Iranian attacks on oil tankers in the Persian Gulf, Trump administration coordinated the largest emergency oil reserve release in history, releasing 172 million barrels from the U.S. Strategic Petroleum Reserve as part of a 400 million barrel global release. The administration also arranged naval escorts for vessels traversing the Strait and insurance arrangements for shippers. Despite these interventions, oil prices exceeded $100 per barrel Wednesday night, spiaking to $120 earlier in the week. Trump prefers oil at $50 per barrel while the industry targets $60. Iran has threatened to push prices to $200 per barrel, potentially reaching $5 per gallon at U.S. pumps. Approximately one-fifth of global oil travels through the Persian Gulf, with China and India as primary consumers, making disruptions economically significant across all major economies.

Read at Axios