The United States faces narrowing options to suppress crude oil prices as escalating attacks on Arabian Gulf energy infrastructure narrow policy levers, according to Crystol Energy Global Advisor Christof Rühl. With the Strait of Hormuz closure limiting supply and Israeli strikes on Iranian energy assets triggering retaliatory damage, traditional demand-management tools have weakened.
President Trump recently rebuked Israel's targeting of energy infrastructure, leading Israel to announce it would cease such attacks. However, the damage is already inflicted: key production facilities offline, and tanker routes under threat. Oil prices have surged on combined supply loss and route risk premiums.
For tanker markets, the policy impasse translates to sustained high freight rates. If Hormuz remains closed, crude cannot flow efficiently regardless of US policy intent. Rerouting around Africa extends voyages by weeks, reducing annual tanker utilization and pushing VLCC and Suezmax charter rates higher. Without corridor reopening, structural supply tightness will dominate crude pricing, constraining policy-driven price relief.