Oil Prices Hit 4-Year High Amid Trump’s New Iran Strategy

Oil prices surged to a four-year high on Thursday, briefly topping $126 a barrel, as stalled U.S.-Iran talks raised concerns about the reopening of the Strait of Hormuz and a lasting end to the ongoing conflict, according to CBS News. The price increase comes as President Donald Trump is expected to receive new options for addressing the standoff with Iran, potentially including further military action.

Defense Secretary Pete Hegseth defended the administration’s approach to securing congressional approval for the war to lawmakers on Thursday, arguing that the 60-day deadline was paused due to the current ceasefire. However, Democratic lawmakers, including Tim Kaine and Elizabeth Warren, disputed this claim, maintaining that the deadline remains Friday.

The true financial cost of the war in Iran is estimated to be closer to $50 billion, U.S. Officials familiar with internal assessments told CBS News. This figure is roughly double the public estimate previously cited by the Pentagon in congressional testimony. A significant portion of the increased cost is attributed to the need to replace munitions that have been used in the conflict.

During an interview with Newsmax’s Greta Van Susteren, President Trump asserted, “We’ve already won” the war in Iran, but expressed a desire to achieve “a bigger margin” of victory. He claimed that Iran’s navy and air force have been destroyed, along with its leadership – assertions the administration has made since the war began.

“We’ve destroyed everything. If we leave right now, it would take them 20 years to rebuild if they ever could rebuild,”

President Donald Trump

However, multiple U.S. Officials with knowledge of intelligence assessments have indicated to CBS News that Iran retains more military capabilities than the White House or Pentagon has publicly acknowledged. As of the start of the ceasefire in early April, approximately half of Iran’s stockpile of ballistic missiles and their associated launch systems remained intact, according to three officials.

Despite his claim of victory, Trump stated that the situation is “not good enough” and emphasized the need for “guarantees they will never have a nuclear weapon.”

The surge in oil prices reflects growing anxieties about potential disruptions to global oil supplies due to the ongoing conflict and the blockade of the Strait of Hormuz. Brent crude has nearly doubled in value since the start of the year, and U.S. Gas prices have reached a four-year high of $4.30 a gallon, according to AAA.

Economists have warned that prolonged disruption could trigger a global recession if it extends into the second half of the year. President Trump has suggested Iran’s economy is on the verge of collapse due to the blockade, but Iran has disputed this characterization.

Iran’s Supreme Leader issued a written statement, read on Iranian state television, declaring that Americans “belong at the bottom” of the Persian Gulf. The statement was notable for being released in written form, as the Supreme Leader has not been seen publicly in Iran, fueling speculation about his health.