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Trump Weighs Limited Strikes on Iran as Oil Hits Six-Month Highs

Markets price a security premium on fears over Hormuz shipping risks.

Overview

  • President Donald Trump said he will decide within about 10–15 days whether to launch military action and confirmed he is considering limited strikes tied to Iran’s nuclear program.
  • Iran’s Revolutionary Guard conducted drills and briefly restricted traffic in the Strait of Hormuz this week, describing the move as a security measure during exercises.
  • Brent traded near $71–$72 a barrel and WTI around $66 after the strongest weekly rally since January, supported by geopolitical risk and an unexpectedly large 16.79 million-barrel U.S. stock draw reported by the EIA.
  • The United States has expanded its regional posture, with the USS Abraham Lincoln in theater and the USS Gerald Ford heading to the area, reinforcing deterrence and signaling options.
  • Analysts warn a prolonged disruption through Hormuz—where about 13 million barrels per day of crude and roughly 20% of global LNG transit—could push oil well above $100, though outcomes depend on the scope and duration of any conflict.