'I'm watching!' Trump demands oil prices stay down after US strikes on Iran
Kevin Lamarque/REUTERS
- Trump took to social media on Monday to demand that oil prices stay down in the wake of US attacks on Iran.
- Oil prices were down slightly on Monday after initially spiking on news of the attacks.
- Iran has the power to close the Strait of Hormuz, a key oil-shipping route.
President Donald Trump does not want to see oil prices rise in the wake of the US attack on Iran's nuclear facilities over the weekend.
Following the US attack on three Iranian nuclear sites, investors are waiting and watching as the potential for retaliation from Tehran raises uncertainty.
While the US market's reaction has been muted so far, Iran has floated the possibility of shutting down the Strait of Hormuz, a key shipping port for the oil industry.
Such a move would disrupt global oil flows, throttling supply and likely raising prices, but Trump took to Truth Social on Monday to demand that oil prices do not move higher after the attacks.
"EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING!"
He added that raising oil prices would be "playing into the hands of the enemy."
In a follow-up post, Trump used the moment to promote his "drill baby drill" mantra, which was part of his message while on the campaign trail last year.
"Since day one, President Trump has championed domestic energy production to strengthen American economic security, and he continues to urge the administration to 'DRILL, BABY' DRILL' and keep prices low. As the President said, producers must keep oil prices down or risk playing into the hands of the enemy," White House spokesman, Harrison Fields, told Business Insider.
A senior administration official added that the administration's goal is to "repair and restore" the US strategic petroleum reserve.
"We currently are not seeing interruptions to oil flows, but are continuing to monitor the situation closely and coordinate with key oil-producing partners," the official said.
While Trump has pushed for greater US oil production, there has been some pushback from the producers themselves.
In a recent survey, oil and gas executives expressed frustration with the agenda, describing "drill baby drill" as being "nothing short of a myth."
The Federal Reserve Bank of Dallas's survey of the industry in March 2025 showed that producers aren't keen on dramatically lowering the price of oil, with one respondent stating that "At $50-per-barrel oil, we will see U.S. oil production start to decline immediately and likely significantly."
Higher crude prices are a top concern for markets as investors eye the possible knock-on effects of America's entry into the Israel-Iran conflict.
On Monday, JPMorgan analysts said that the market is pricing in about a one-in-five chance that oil prices could shoot up by 75%. Meanwhile, Goldman Sachs said that the conflict is one reason it hasn't lowered its recession forecast.