Trump Weighs Iran Military Options as Hormuz Closure Lifts U.S. Oil to $107
Updated
Updated · Fortune · May 17
Trump Weighs Iran Military Options as Hormuz Closure Lifts U.S. Oil to $107
11 articles · Updated · Fortune · May 17
U.S. stock futures fell Sunday while oil climbed, with Dow futures down 174 points and U.S. crude up 1.75% to $107.26 a barrel as the Strait of Hormuz stayed shut.
Stalled U.S.-Iran talks and a U.S.-China summit that failed to reopen the waterway deepened fears that energy-driven inflation will persist, pushing the 30-year Treasury yield to 5% for the first time in two decades.
Trump met his national security team at his Virginia golf club on Saturday and plans a White House Situation Room meeting Tuesday, saying Iran must offer a better deal or “get hit much harder.”
JPMorgan sees developed-world oil inventories nearing operational stress by early June, while Capital Economics and UBS warned stockpiles could hit critically low levels by late June, raising the risk of panic buying and sharper price swings.
With global oil buffers vanishing by June, is a worldwide economic crisis now inevitable?
Can US military force reopen the strait, or will it ignite an even wider regional war?
As allies pursue separate deals with Iran, is the era of US-guaranteed free navigation ending?
Global Economic Crisis Erupts After Strait of Hormuz Shutdown: Oil Prices Soar, US-Iran Tensions Rise, and Political Fallout Intensifies
Overview
The closure of the Strait of Hormuz on May 18, 2026, has triggered an immediate and severe global economic crisis. As this critical choke point for the world’s oil supply became inaccessible, energy markets were hit hard, leading to rapid depletion of global energy inventories and a cascade of negative consequences. These disruptions have threatened to destabilize global markets and consumer confidence. The report highlights that reopening the Strait and resolving the Middle East conflict are essential steps to mitigate the economic fallout and restore stability, underscoring the urgent need for coordinated international action.