Trump, Iran Trade Threats Over Oil Shipments as Gas Prices Surge

The Trump administration is focusing on protecting oil shipments amid rising gas prices and military actions against Iranian vessels.

Published on Mar. 11, 2026

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The spike in oil prices is affecting financial markets globally, with concerns that the ongoing conflict between the U.S. and Iran could disrupt the worldwide flow of oil and natural gas for an extended period. There is fear Iran may start placing mines in the Strait of Hormuz, a crucial waterway off its coast where approximately one-fifth of the world's oil is transported. The U.S. military reported it destroyed over a dozen Iranian vessels on Tuesday that were capable of laying mines. President Trump escalated threats, stating that if Iran places mines and they are not removed, "the military consequences to Iran will be at a level never seen before." The Trump administration is providing ship reinsurance and offering for the U.S. Navy to escort oil tankers through the Strait if necessary. Analysts caution that oil prices could rise significantly if the Strait of Hormuz remains largely closed, potentially leading to further increases in U.S. gas prices.

Why it matters

The spike in oil prices is certainly rocking financial markets worldwide because there is concern that the war could block the global flow of oil and natural gas for an extended period of time. This could have major economic consequences, especially if the Strait of Hormuz remains largely closed, which would lead to further increases in U.S. gas prices that are already at high levels.

The details

The U.S. military destroyed more than a dozen mine laying Iranian vessels on Tuesday that could lay bombs in the path ships travel. The president also ramped up threats, saying if Iran placed mines and they are not removed, the "Military consequences to Iran will be at a level never seen before." Some analysts warn oil prices will go much higher if the Strait of Hormuz remains mostly closed, which would increase gas prices in the US even further. According to AAA today, the national average for a gallon is $3.58.

  • On Tuesday, the U.S. military destroyed more than a dozen mine laying Iranian vessels.
  • As of Wednesday, the national average for a gallon of gas is $3.58 according to AAA.

The players

Donald Trump

The President of the United States.

Iran

A country in the Middle East that is in conflict with the United States over oil shipments and military actions.

Mike Sommers

The CEO of the American Petroleum Institute.

Vincent Clerc

The CEO of Maersk, a major shipping company.

Karoline Leavitt

The White House Press Secretary.

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What they’re saying

“I think this is the nightmare scenario that we've been concerned about for three decades that the Strait of Hormuz would get shut down as a consequence of a major issue within the Straits. That's 18 million barrels of oil every single day that are not coming to market. There's another six million barrels that are actually being shut in right now.”

— Mike Sommers, CEO, American Petroleum Institute (gulfcoastnewsnow.com)

“We are clearly in uncharted territory. I think the big problem that we have to solve now is with the Strait being closed. There is enough oil in the world, but there is not enough oil everywhere in the world.”

— Vincent Clerc, CEO, Maersk (gulfcoastnewsnow.com)

“The recent increase in oil and gas prices is temporary and this operation will result in lower gas prices in the long term. Once the national security objectives of Operation Epic Fury are fully achieved, Americans will see oil and gas prices drop rapidly, potentially even lower than they were prior to the start of the operation.”

— Karoline Leavitt, White House Press Secretary (gulfcoastnewsnow.com)

What’s next

On Wednesday, the G7 leaders, representing the world's seven largest economies, are set to meet to discuss the energy situation in the Middle East and explore strategies to mitigate the economic impact of the conflict.

The takeaway

The conflict between the U.S. and Iran over oil shipments in the Strait of Hormuz has led to a spike in global oil prices and concerns about potential disruptions to the worldwide flow of oil and natural gas. This could have significant economic consequences, especially if the Strait remains largely closed, leading to further increases in U.S. gas prices that are already at high levels.