Harold Hamm Warns of Oil Price Spikes Due to Iran Strait of Hormuz Threat

Crude oil prices are surging and the global economy faces potential shocks as tensions escalate in the Strait of Hormuz, a critical waterway for oil and other essential goods. Continental Resources founder and Chairman Harold Hamm warned on Thursday, April 2, 2026, that oil prices could spike to $200 per barrel if the situation is not resolved quickly. The bottleneck in the strait, caused by threats of missile and drone attacks by Iran, has already brought traffic through the waterway to a near standstill.

Hamm, a major donor to U.S. President Donald Trump, stated that clearing the bottleneck could take “a few weeks.” He expressed his concerns during an appearance on ‘Mornings with Maria,’ emphasizing the need for swift action to restore safe passage for tankers. While oil prices briefly reached $100 a barrel earlier this week before falling back, Hamm cautioned that the “biggest worry” is a further increase to $200 a barrel, a scenario he believes would be detrimental to both the world economy and the energy industry.

Strait of Hormuz: A Vital Chokepoint

The Strait of Hormuz is a narrow waterway connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is one of the world’s most strategically important oil chokepoints, with approximately 20% of global oil consumption passing through it daily. Disruptions to traffic through the strait have immediate and significant consequences for global energy markets and the broader economy.

The current crisis stems from escalating tensions between the U.S. And Iran, compounded by the ongoing U.S.-Israel war on Iran. Iran has threatened missile and drone attacks, effectively halting tanker traffic. This closure isn’t limited to oil; the strait is also a crucial transit route for petrochemicals, fertilizer, and helium – materials essential for various industries, including agriculture, and technology.

Trump Administration Response

In response to the crisis, the Trump administration has pledged to take measures to ensure the safe passage of tankers through the Strait of Hormuz. These measures include offering insurance guarantees and providing naval escorts for commercial vessels. President Trump has also reportedly engaged in “productive conversations” with Iranian officials, although details remain scarce. The administration has released oil from the strategic petroleum reserve, eased sanctions on Russian oil, and suspended a regulation governing domestic oil transport in an attempt to lower prices.

Despite these efforts, the situation remains volatile. According to a report from Argus Media on March 11, 2026, traffic through the strait has “all but ground to a halt.” The impact is already being felt by consumers, with gasoline prices in the United States soaring to nearly $4 a gallon as of March 23, 2026, according to ABC News.

Broader Economic Implications

The potential for sustained disruption in the Strait of Hormuz extends far beyond energy prices. Raymond Robertson, a professor at Texas A&M University, highlighted the critical role of petrochemicals in numerous everyday products. A shortage of these materials could lead to price increases for groceries, smartphones, and a wide range of other goods, potentially triggering a broader supply shock.

Hamm echoed this sentiment, stating that the sooner regular tanker traffic can resume, “the better off everybody will be.” He warned that a prolonged disruption could have severe consequences for the global economy, emphasizing the need for a swift resolution to the crisis. The situation is being closely monitored by markets and policymakers worldwide, as the fate of the Strait of Hormuz has significant implications for global trade and economic stability.

Continental Resources, founded and chaired by Hamm, has recently expanded its operations into Argentina’s Vaca Muerta shale basin. This diversification may offer some insulation against the immediate impacts of the Hormuz crisis, but the company remains vulnerable to broader economic downturns triggered by escalating oil prices and supply chain disruptions.