Oil Rebounds To $86 After Trump Warns Iran Over Possible Hormuz Naval Mines

Oil prices staged another violent intraday reversal Tuesday afternoon after President Donald Trump warned Iran against placing naval mines in the Strait of Hormuz, threatening severe military consequences if such activity were confirmed.

West Texas Intermediate crude – as tracked by the United States Oil Fund (NYSE:USO) – surged to around $86 per barrel, rebounding sharply from an intraday low near $79 reached just two hours earlier, underscoring the extreme headline-driven volatility dominating energy markets since the Iran war began.

In a statement posted on social media, Trump issued a direct warning to Tehran:

"If Iran has put out any mines in the Hormuz Strait, and we have no reports of them doing so, we want them removed immediately. If for any reason mines were placed and they are not removed forthwith, the military consequences to Iran will be at a level never seen before."

Trump's warning followed a report from CBS News that U.S. intelligence has begun detecting signs Iran may be preparing to deploy naval mines in the Strait of Hormuz, a move that could severely disrupt global oil shipments.

Earlier in the day, oil had plunged after U.S. Energy chief Chris Wright claimed on X that the U.S. Navy had successfully escorted a tanker through the Strait of Hormuz — a post that was later deleted.

During a press briefing, White House press secretary Karoline Leavitt confirmed the claim was inaccurate.

"The U.S. Navy has not escorted a tanker or vessel at this time," Leavitt said, adding that such escorts remain an option the administration could deploy if necessary.

The White House added that the current spike in energy prices should be temporary.

"The recent increase in oil and gas prices is temporary, and once the objectives of this operation are achieved, prices will drop rapidly."

The rapid sequence of conflicting headlines — from escort claims, to denials, to threats of potential naval mines — has turned Tuesday into another whipsaw session for oil, following Monday’s wild selloff.

The relief rally that Wall Street experienced earlier in the session faded into the close. The S&P 500 – tracked by the S&P 500 ETF Trust (NYSE:SPY) – closed at 6,783 points, down 0.2% for the day.

Chart: Oil Had A 35% Drop In 48 Hours, It Then Rallied 13% In A Matter Of Minutes

Photo: Shutterstock

This article Oil Rebounds To $86 After Trump Warns Iran Over Possible Hormuz Naval Mines originally appeared on Benzinga.com