US Imposes Siege on Iranian Ports Amid Fears of Supply Disruption

US President Trump Meets with Oil Firms on Potential Impact of Blockade on Fuel Supplies

Washington D.C. - US President Donald Trump met with oil executives on Wednesday to discuss ways to mitigate the impact of a potential months-long siege of Iranian ports on fuel supplies. The meeting came as concerns over the prolonged supply disruption in the Strait of Hormuz and fears of an extended blockade on Iranian ports led to a surge in oil prices.

According to a White House official, Trump discussed steps taken by his administration to alleviate global oil markets and ways to continue the current blockade for months if needed, while minimizing its impact on American consumers. The meeting triggered concerns in the market about an extended disruption to oil supplies.

Oil prices rose significantly, with US crude settling up 6.95 percent at $106.88 per barrel and Brent crude, the international benchmark, increasing by 6.08 percent to $118.03 per barrel. Oil futures for June continued to rise on Thursday, reaching $119.94 per barrel as of 00:57 GMT.

The Pentagon revealed that the war on Iran has cost the US military $25 billion so far. Analysts say prospects for a near-term resolution to the conflict or reopening of the Strait of Hormuz remain dim.

The UAE announced its withdrawal from OPEC and the broader OPEC+ alliance effective May 1, citing dissatisfaction with the cartel’s production policy. Trump welcomed the move, saying it would help lower oil prices.

Experts note that the UAE’s departure is unlikely to have an immediate impact on the market due to ongoing supply disruptions in the Strait of Hormuz. Gulf countries are expected to take months to return to pre-war production volumes.

Source: Al Jazeera