Iran War Live Updates: As Oil and Gas Prices Soar, Trump Seeks to Reassure Americans

Iran war news: Brent crude hits $95 as Trump pledges US energy relief

Muhammad Asghar | GlobalBeat

Brent crude surged to $95 per barrel early Tuesday after overnight missile exchanges between Iran and Israel.

The White House announced President Donald Trump would address the nation at 9 a.m. to outline steps to protect U.S. fuel supplies.

Global benchmark Brent jumped 8% from Monday’s $88 close, while U.S. gasoline futures rose 11% to $2.81 per gallon, according to CME Group data.

Trump tweeted at 6:14 a.m. that he had “instructed agencies to release oil from the Strategic Petroleum Reserve if needed” and said regulators would probe “any evidence of price gouging.” Energy Secretary Chris Wright told reporters the reserve holds 368 million barrels, enough to cover 45 days of U.S. net imports.

Iran’s Revolutionary Guards said they fired “dozens of ballistic missiles” at two Israeli air bases in retaliation for last week’s strike that killed 17 people in Damascus. Israel’s military confirmed projectiles hit the Nevatim and Ramon bases, reporting “minor damage” and no casualties. Rear-Adm. Daniel Hagari told journalists Israeli air defences intercepted 80% of the incoming missiles.

The exchange triggered the largest one-day oil spike since Russia’s 2022 invasion of Ukraine, analysts at Goldman Sachs wrote in a client note. They raised their 2025 average Brent forecast to $94 from $86 and warned prices could breach $100 if tanker traffic through the Strait of Hormuz is disrupted. Roughly 21 million barrels per day, or 21% of global supply, pass through the narrow waterway.

European natural gas futures leapt 14% to €48 per megawatt hour, extending gains after Iran-aligned Houthi rebels claimed a drone strike on Saudi Arabia’s Shaybah gas facility late Monday. State oil giant Aramco said the attack caused “a limited fire” and output was unaffected. Two energy traders in Riyadh told Reuters the company had placed staff at eastern province sites on heightened alert.

Trump spoke by telephone with Saudi Crown Prince Mohammed bin Salman and UAE President Sheikh Mohammed bin Zayed early Tuesday, the White House said. Readouts said the leaders “agreed to coordinate on market stability” but gave no offer of additional OPEC supply. Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman meets Russian Deputy Prime Minister Alexander Novak in Riyadh on Wednesday for scheduled OPEC+ talks.

U.S. average pump prices rose to $3.68 per gallon Tuesday, up 9 cents overnight, travel club AAA reported. California motorists paid $5.12, while Texas prices reached $3.29. Tom Kloza, global head of energy analysis at OPIS, predicted a national average above $4 within two weeks “unless Gulf Coast refineries receive cheaper sour crude soon.”

Treasury Secretary Scott Bessent convened bank executives at 7 a.m. to assess financial-system exposure, according to three people present. JPMorgan Chase, Citigroup and Bank of America collectively hold roughly $27 billion in energy-related loans, Federal Reserve data show. Share prices of ExxonMobil and Chevron gained 4% in pre-market trading, while United Airlines slid 7% on jet-fuel cost fears.

## Background

U.S. crude production reached 13.5 million barrels per day in March, an all-time high, yet America still imports 8 million bpd of heavier grades used by Gulf Coast refineries. The Strategic Petroleum Reserve, once 727 million barrels, fell to a 40-year low after President Joe Biden released 180 million barrels in 2022 following the Ukraine war. Congress has blocked administration plans to begin refilling the caverns this year, citing budget rules.

Iran’s missile programme expanded after the 2015 nuclear deal unravelled in 2018 when Trump withdrew and re-imposed sanctions. The country now possesses the largest stockpile of ballistic missiles in the Middle East, according to the International Institute for Strategic Studies. Israeli officials estimate Tehran has more than 3,000 projectiles with ranges up to 2,000 kilometres.

## What’s Next

Trump plans to meet congressional leaders at 11 a.m. to discuss bipartisan legislation that would waive the 18.4-cents-per-gallon federal gasoline tax through Labor Day, a senior Republican aide said. The Senate Energy Committee scheduled a hearing for Thursday on accelerating pipeline permits, while the administration reviews whether to extend temporary Jones Act waivers that allow foreign tankers to move fuel between U.S. ports.

Analysts will watch weekly inventory data due Wednesday from the Energy Information Administration; a 5-million-barrel draw is forecast. Tanker trackers Kpler reported at least 9 Very Large Crude Carriers, carrying 18 million barrels, have diverted from the Red Sea to the longer Cape of Good Hope route since Monday, adding 15 days to voyages.