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The shutdown followed a series of military strikes against Iran that began on February 28. Those strikes involved U.S. forces working alongside Israeli military assets.
Tehran responded quickly.
Iran’s new supreme leader, Mojtaba Khamenei, formally confirmed Thursday that the strategic waterway would remain closed.
Markets reacted instantly.
The price of Brent crude surged past $100 per barrel by the end of the day — a dramatic jump from the $72 level seen when the conflict first erupted less than two weeks earlier.
That represents a 39 percent spike in oil prices in under fourteen days.
The disruption does not stop with crude oil.
The same passage is responsible for transporting roughly one-fifth of the world’s liquefied natural gas supply, multiplying the economic shockwaves across global energy markets.
The International Energy Agency has described the disruption as potentially the largest oil supply shock ever recorded.
Trump Administration Responds With Emergency Energy Plan
While markets were still reacting, the Trump administration moved quickly to ease the pressure.
Treasury Secretary Scott Bessent announced a temporary authorization allowing certain countries to purchase Russian oil that is currently stuck at sea under sanctions restrictions.
The policy is narrowly designed to address a specific logistical problem.
An estimated 124 million barrels of Russian-origin crude oil are currently sitting aboard tankers scattered across roughly 30 global locations.
Those shipments were effectively frozen due to existing sanctions policies.
Under the temporary 30-day authorization, that oil could now be sold and delivered to markets already facing severe shortages.
Bessent described the policy as a “narrowly tailored” and “short-term” measure, stressing that it only applies to oil that has already been extracted and loaded onto tankers.
According to the Treasury Secretary, the policy does not create meaningful new revenue for Moscow.
His reasoning is simple: Russia collects the majority of its profits when oil is pumped out of the ground — not when the cargo is ultimately sold.
Reports from Fox News indicate the stranded supply could equal roughly five to six days of global oil demand, potentially offsetting a portion of the shortage created by the Strait shutdown.
The White House has also taken additional steps to stabilize markets.
Earlier in the week, the administration released 172 million barrels from the U.S. Strategic Petroleum Reserve, attempting to ease supply fears while the crisis unfolds.
Meanwhile, Donald Trump is reportedly evaluating military options to reopen the waterway.
Those possibilities include deploying the U.S. Navy to escort tankers through the strait or potentially establishing full operational control over the shipping corridor.
Democrats Lash Out at the Plan
Not surprisingly, the decision triggered an immediate political backlash in Washington.
Several Democratic lawmakers quickly criticized the move, arguing it benefits Russia during a moment of global instability.
Senator Brian Schatz posted online: “Looks like we fought Iran and Russia won.”
Meanwhile, Senate Majority Leader Chuck Schumer and a group of Democratic senators had already attacked the administration earlier this week over a separate sanctions waiver involving India.
But critics of those attacks say Democrats have yet to present a clear alternative.
With gas prices already climbing rapidly — jumping 27 cents in just four days — millions of households across the country are bracing for even higher costs.
The Strategy Behind the Move
Supporters of the administration argue the decision is more strategic than critics admit.
Russia has already been benefiting from rising energy prices since the strait closure began.
Because global oil markets tightened overnight, Moscow’s fossil fuel revenue surged automatically — regardless of any decision made in Washington.
Estimates suggest Russia has taken in nearly $7 billion in additional energy revenue since the crisis began.
Every additional day the strait remains closed pushes prices higher and continues to boost those earnings.
Bessent’s plan, supporters say, does not create that dynamic — it simply redirects oil that is already floating on the water.
Energy Secretary Chris Wright explained the rationale during a Sunday interview, noting that much of the oil would likely have been sold to China anyway.
Allowing global refiners to purchase those shipments now simply injects supply into a market that suddenly lost a major artery.
A Bigger Geopolitical Goal
Behind the emergency policy lies a broader strategic calculation from the Trump administration.
President Donald Trump has repeatedly argued that the short-term price volatility will ultimately strengthen the United States’ long-term energy dominance.
If Iran’s military capabilities are weakened and its regional influence curtailed, the administration believes global oil markets could shift dramatically.
The Iranian regime has spent decades funding proxy groups such as Hamas, Hezbollah, and Houthi militants across the Middle East.
Reducing Tehran’s ability to project power could reshape the geopolitical landscape — while simultaneously positioning the United States, already producing record amounts of oil and natural gas, as the dominant supplier once the conflict subsides.
For now, however, the immediate battle is over global energy supply.
And according to Treasury Secretary Scott Bessent, the administration still has additional tools available.
Speaking with Fox Business host Larry Kudlow, Bessent suggested there may be hundreds of millions more barrels of sanctioned oil sitting on tankers worldwide.
If necessary, he said, the Treasury Department could release additional shipments to help stabilize the market.
In other words, the strategy may only be beginning.
