PC(TV9Bharayvarsh)
On Tuesday, Secretary Wright posted on his X account (formerly Twitter) that the US Navy had successfully escorted an oil tanker through the Strait of Hormuz, a critical chokepoint for global oil shipments amid ongoing tensions in the region. The post praised President Trump for “maintaining stability of global energy” during military operations against Iran.
The claim sent crude prices tumbling overnight, as traders interpreted it as a sign of easing supply disruptions in the strategically vital waterway.
However, the White House swiftly denied the report.
Press Secretary Karoline Leavitt told reporters: “The US has not carried out such an operation… The US Navy has not escorted a tanker or vessel at this time.” She added that President Trump, Secretary Wright, and the administration’s energy team continue to monitor the situation closely. Wright deleted the post shortly after it was published, but the damage was done-contributing to extreme intraday swings in an already volatile market.
Broader Market Pressures: IEA Reserves and Geopolitical Risks
Prices have also been whipsawed by reports surrounding the International Energy Agency (IEA). The IEA convened discussions on potentially releasing emergency oil reserves to counteract supply risks from the Strait of Hormuz disruptions. The agency oversees 1.2 billion barrels of public emergency stocks among its 30 member nations (primarily in North America, Europe, and Northeast Asia), plus an additional 600 million barrels held in industry stocks under government obligations.
Sources indicated to CNBC that the US views a coordinated release of 300 million to 400 million barrels as “appropriate”-a massive volume that could represent 25-30% of available emergency
stocks and dwarf previous interventions.
Adding to the uncertainty, President Trump issued a stern warning to Iran against mining the Strait of Hormuz, responding to reports that the country had deployed dozens of naval mines to hinder transit. This came amid broader geopolitical tensions, with the strait handling roughly one-fifth of global oil flows.
Trader Sentiment Amid “Fog of War”
Rebecca Babin, senior energy trader at CIBC Private Wealth Group, captured the market mood: “It very much feels like a market trading in the fog of war, reacting in real time as events unfold, rather than one moving in an orderly fashion. Traders continue to get whipsawed by intense price action and extreme volatility in crude, with headlines driving sharp intraday swings.”
As developments continue to unfold rapidly, oil markets remain highly sensitive to any fresh headlines on military actions, diplomatic efforts, or reserve releases. The rebound reflects relief over the corrected Strait escort claim, but underlying supply risks persist.