Oil Markets Brace as Trump Calls Allied Navies to Defend Hormuz Passage

President Donald Trump said Saturday that the United States and allied nations are preparing to send warships to the Strait of Hormuz to keep the world’s most critical oil chokepoint open as the Iran conflict threatens roughly 20% of global petroleum flows.

Before this latest geopolitical drama, roughly 20 million barrels of crude and condensate per day passed through that corridor—about one-fifth of the planet’s petroleum liquids consumption. When that artery clogs, the global economy notices. Quickly.

Shipping companies, understandably uninterested in starring in the next viral maritime disaster video, have pulled back. The result: tanker traffic that once hummed through the corridor has dropped dramatically, with some estimates showing declines approaching 70% before activity nearly froze altogether.

Energy markets responded with the enthusiasm of a cat meeting a cucumber. West Texas Intermediate crude (WTI), which hovered near $67 per barrel before the conflict erupted, has climbed toward the mid-$90 range as traders scramble to price in the possibility that the world’s busiest oil gateway could remain contested. Brent crude is now above $100 per barrel.

Translation: the waterway is technically open, provided nobody fires anything explosive at the vessels using it. Hegseth also confirmed U.S. forces have already targeted Iranian naval assets believed to be laying mines or preparing attacks, including multiple minelayers and coastal launch positions.

Trump, meanwhile, is pushing for a broader coalition—naming countries such as China, France, Japan, South Korea, and the United Kingdom as potential contributors to a multinational naval presence. Historically, there is precedent. During the Iran-Iraq Tanker War of the 1980s, the U.S. Navy escorted commercial vessels through the Gulf under Operation Earnest Will, effectively running maritime bodyguard duty for oil shipments.

But the 2026 version of that challenge comes with updated complications: swarming drones, anti-ship missiles, floating mines, and the occasional speedboat packed with unpleasant intentions. Escorting tankers in such an environment is less like directing traffic and more like threading a convoy through a fireworks factory.

When the energy system hiccups, the economic consequences rarely stay local. Trump’s blunt message Saturday was that the United States intends to restore freedom of navigation—preferably with help.

“We will soon get the Hormuz Strait OPEN, SAFE, and FREE!” he wrote.

The timeline for that promise remains unclear. But until tanker traffic resumes at anything close to normal levels, the global economy—and energy traders everywhere—will keep one nervous eye on a narrow strip of water that suddenly feels much smaller than 21 miles.