Trump: "Will not seize Iran's oil for now" — Further blockade of the Strait of Hormuz would hit 20 times harder; EU releases oil reserves in response

U.S. President Trump characterizes recent military actions against Iran as a “short-term operation.” He states that the U.S. is working with Israel to “completely destroy” Iran’s drone and missile capabilities and that the U.S. and its allies will continue military actions until the enemy is “utterly defeated.”

Trump: Blockade of the Hormuz Strait Will Face 20 Times the Response

Trump issues the strongest warning regarding the Strait of Hormuz:

If Iran takes any action to prevent the flow of oil through the Strait of Hormuz, they will face a response 20 times stronger than now. Additionally, we will destroy targets that are easily obliterated, making Iran’s existence as a nation nearly impossible to rebuild.

The Strait of Hormuz carries about a quarter of the world’s oil shipments, with approximately 13 million barrels passing daily. Over 200 ships, including oil tankers and liquefied gas vessels, are currently anchored near the strait, effectively paralyzing this critical energy corridor.

Hinting at Seizing Iran’s Oil Reserves, Following Venezuela’s Example

When asked whether the U.S. is considering seizing Iran’s oil, Trump replied:

Of course, this has been discussed. Look at Venezuela—but it’s still too early to talk about that.

Trump cites Venezuela as a precedent. Since the U.S. raid that captured Venezuelan leader Maduro in January, the Trump administration has acquired and begun developing Venezuela’s oil reserves. Last month, Trump claimed in a national security briefing that the U.S. had obtained over 80 million barrels of Venezuelan oil.

U.S. officials describe this military action as “aimed at depriving Iran of nuclear weapons and weakening its deterrence, so it no longer poses a threat to the U.S. or neighboring Middle Eastern countries.”

EU Prepares Strategic Oil Reserves; G7 Emergency Meeting Tuesday

On March 9, the Eurogroup held a meeting in Brussels. Chair Paschal Donohoe said they are closely monitoring market reactions to the Middle East situation, noting, “We see upward pressure on energy prices.”

Valdis Dombrovskis, European Commission Vice President for the Economy, stated that while it is “premature” to discuss specific policy measures now, the EU is prepared to take necessary actions, including utilizing strategic oil reserves. Currently, EU member states hold enough strategic reserves to cover 90 days of consumption.

According to CNBC, G7 energy ministers will hold an emergency meeting Tuesday morning to discuss jointly releasing oil reserves. Sources say the U.S. considers releasing between 300 million and 400 million barrels (about 25%-30% of the G7’s total reserve of 1.2 billion barrels) to be an appropriate scale.

Market Impact

WTI crude futures are currently above $105 per barrel, the highest in nearly four years. The U.S. dollar index (DXY) remains above 99, while Bitcoin hovers around $66,000. If the G7 announces a joint release of reserves on Tuesday, oil prices may see a short-term pullback, easing the pressure of a strong dollar on risk assets.