Global oil markets swung both ways for a second straight day on Tuesday as mixed signals from the Trump administration about the war in Iran and security in the Strait of Hormuz caused panic among investors and energy traders.
Prices plunged after US energy secretary Chris Wright briefly posted – and then deleted – a post claiming the US Navy had escorted an oil tanker through the Strait of Hormuz, one of the world’s most critical energy chokepoints. The White House later confirmed that no such operation had taken place.
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The episode added to already intense uncertainty in global markets as the conflict in West Asia entered its second week, disrupting energy supplies and escalating military activity across the region.
Deleted post triggers market turmoil
Oil prices dropped sharply after Wright’s now-deleted post on social media suggested the US Navy had already begun escorting tankers through the Strait of Hormuz to keep oil flowing to global markets.
The claim briefly reassured traders that maritime routes might be reopening, prompting a sudden sell-off. Prices fell almost 20% before recovering later in the day as the White House clarified the information was inaccurate.
White House press secretary Karoline Leavitt said during a briefing that the US Navy had not escorted any tanker through the strait.
“I can confirm that the US Navy has not escorted a tanker or vessel at this time, though that is an option the president has said he will utilise if necessary,” she said.
The Energy Department later said the post was removed after it was determined to have been incorrectly captioned by staff.
Despite the clarification, the brief misinformation amplified volatility in markets already reacting to war-driven supply disruptions.
Oil prices whipsaw amid supply fears
Brent crude had surged close to $120 per barrel on Monday as fears grew that the conflict could disrupt global supplies. Prices then plunged to as low as $81.16 on Tuesday before stabilising near $88 per barrel.
The sharp swings highlight growing anxiety among traders as the Strait of Hormuz, through which roughly 20% of the world’s oil passes, remains effectively closed to most commercial traffic.
Shipping companies have largely halted tanker movements through the route due to security concerns, creating bottlenecks in the Persian Gulf and forcing major producers to cut output.
Saudi Arabia, Iraq, the United Arab Emirates and Kuwait have all reduced production as storage facilities fill and exports slow.
Saudi Aramco chief executive Amin Nasser described the situation as “the biggest crisis the region’s oil and gas industry has faced.”
Conflict spreads across the Middle East
The war between the United States, Israel and Iran continued to intensify on Tuesday, with the Pentagon describing it as the most intense day of attacks yet.
US defense secretary Pete Hegseth said Washington would continue operations until Iran is “totally and decisively defeated.”
Iran has responded with drone and missile strikes targeting US bases and energy infrastructure across the region, including in the UAE, Saudi Arabia, Kuwait and Bahrain.
A drone strike forced the shutdown of the major Ruwais oil refinery in the United Arab Emirates after a fire broke out in an industrial area near the facility, according to people familiar with the matter.
At the same time, Israel continued strikes on southern Lebanon aimed at weakening Iran-backed Hezbollah forces.
More than 1,300 Iranians have been killed since the war began, according to official figures by Iran government. The US has reported at least seven military deaths and around 150 injured personnel.
Strait of Hormuz at the centre of crisis
The Strait of Hormuz has emerged as the central flashpoint of the energy crisis, with Iran warning that oil exports from the Gulf could remain blocked while the war continues.
Before the conflict, an average of about 138 ships passed through the narrow waterway each day.
In response to rising risks, the Trump administration has offered political risk insurance for tankers operating in the Gulf and signalled that naval escorts could be deployed if needed.
President Donald Trump warned that any attempt by Iran to block shipping through the strait would face overwhelming military retaliation.
Global leaders prepare response
The crisis is also prompting international coordination. Leaders of the Group of Seven nations are set to meet Wednesday to discuss ways to address rising energy prices and stabilise global markets.
With the Strait of Hormuz largely shut and military operations intensifying, analysts say the outlook for energy markets remains highly uncertain – leaving oil traders bracing for more sudden swings in the days ahead.