Publication date:
June 23, 2025
Trump Urges Oil Producers to Keep Prices Low Amid Iran Tensions
President Donald Trump took to social media to demand oil prices remain low following US strikes on Iran, emphasizing his 'drill baby drill' agenda.
Geopolitics
In the wake of U.S. strikes on Iranian nuclear facilities, President Donald Trump has publicly called for oil prices to remain low, highlighting the delicate balance between geopolitical actions and energy market stability. Trump's statements, made via his Truth Social platform, underscore the administration's concern about potential economic repercussions from rising oil prices.
"EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING!" Trump posted, adding that raising oil prices would be "playing into the hands of the enemy." This directive comes as markets brace for potential retaliation from Iran, including the possibility of disrupting oil flows through the strategically crucial Strait of Hormuz.
Trump's message aligns with his long-standing "drill baby drill" mantra, which has been a cornerstone of his energy policy. The President used the moment to reiterate his push for increased domestic energy production, viewing it as a means to strengthen American economic security and maintain low oil prices.
White House spokesman Harrison Fields elaborated on Trump's stance, stating, "As the President said, producers must keep oil prices down or risk playing into the hands of the enemy." Fields emphasized the administration's commitment to championing domestic energy production from day one.
A senior administration official added that the current goal is to "repair and restore" the U.S. strategic petroleum reserve. The official noted that while there are currently no interruptions to oil flows, the situation is being closely monitored in coordination with key oil-producing partners.
However, Trump's push for greater U.S. oil production has met some resistance from industry executives. A recent survey by the Federal Reserve Bank of Dallas revealed frustration among oil and gas producers with the "drill baby drill" agenda, with one respondent describing it as "nothing short of a myth." The survey indicated that producers are not keen on dramatically lowering oil prices, suggesting that at $50 per barrel, U.S. oil production would likely decline significantly and immediately.
The President's intervention comes at a time of heightened market sensitivity. JPMorgan analysts have estimated that the market is pricing in about a one-in-five chance that oil prices could surge by 75% due to the current geopolitical tensions. Meanwhile, Goldman Sachs has cited the conflict as a reason for maintaining its recession forecast.
Trump's public stance on oil prices reflects the complex interplay between geopolitical actions, energy policy, and economic considerations. As the situation with Iran continues to evolve, energy traders and analysts will be closely watching both market reactions and political responses, understanding that presidential directives can have significant implications for the global energy landscape.
The coming days and weeks will be crucial in determining whether Trump's call for low oil prices can be maintained in the face of escalating tensions and potential supply disruptions. The energy sector remains on high alert, balancing the push for increased domestic production against the realities of global market forces and geopolitical uncertainties.
"EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING!" Trump posted, adding that raising oil prices would be "playing into the hands of the enemy." This directive comes as markets brace for potential retaliation from Iran, including the possibility of disrupting oil flows through the strategically crucial Strait of Hormuz.
Trump's message aligns with his long-standing "drill baby drill" mantra, which has been a cornerstone of his energy policy. The President used the moment to reiterate his push for increased domestic energy production, viewing it as a means to strengthen American economic security and maintain low oil prices.
White House spokesman Harrison Fields elaborated on Trump's stance, stating, "As the President said, producers must keep oil prices down or risk playing into the hands of the enemy." Fields emphasized the administration's commitment to championing domestic energy production from day one.
A senior administration official added that the current goal is to "repair and restore" the U.S. strategic petroleum reserve. The official noted that while there are currently no interruptions to oil flows, the situation is being closely monitored in coordination with key oil-producing partners.
However, Trump's push for greater U.S. oil production has met some resistance from industry executives. A recent survey by the Federal Reserve Bank of Dallas revealed frustration among oil and gas producers with the "drill baby drill" agenda, with one respondent describing it as "nothing short of a myth." The survey indicated that producers are not keen on dramatically lowering oil prices, suggesting that at $50 per barrel, U.S. oil production would likely decline significantly and immediately.
The President's intervention comes at a time of heightened market sensitivity. JPMorgan analysts have estimated that the market is pricing in about a one-in-five chance that oil prices could surge by 75% due to the current geopolitical tensions. Meanwhile, Goldman Sachs has cited the conflict as a reason for maintaining its recession forecast.
Trump's public stance on oil prices reflects the complex interplay between geopolitical actions, energy policy, and economic considerations. As the situation with Iran continues to evolve, energy traders and analysts will be closely watching both market reactions and political responses, understanding that presidential directives can have significant implications for the global energy landscape.
The coming days and weeks will be crucial in determining whether Trump's call for low oil prices can be maintained in the face of escalating tensions and potential supply disruptions. The energy sector remains on high alert, balancing the push for increased domestic production against the realities of global market forces and geopolitical uncertainties.
