On Friday, investor and “Shark Tank” personality Kevin O’Leary warned that tensions around the Strait of Hormuz could have far-reaching consequences for the global economy as Donald Trump ramps up pressure on Iran.
Oil Prices Rising As Iran Conflict Fuels Market Uncertainty
O’Leary shared his views in a Fox News appearance posted on X.
He said oil prices are currently inflated by geopolitical risk premiums and suggested that, absent those tensions, crude would likely trade between $55 and $70 per barrel, which he described as a level where “the economy works just fine.”
“One thing to remember about oil — it’s the only commodity on earth that is in the input cost of every single sector of the economy,” O’Leary said. “You don’t have an economy without energy.”
Oil prices briefly climbed above $100 this week for the first time since 2022 amid escalating tensions in the Middle East and concerns that shipping routes could be disrupted.
Trump Escalates Pressure On Iran With Strike On Key Oil Facility
The comments came as Trump announced that U.S. Central Command carried out a major bombing raid targeting Iran’s primary crude export terminal on Kharg Island.
The facility, located roughly 16 miles off Iran’s coast and about 300 miles from the Strait of Hormuz, handles nearly 90% of the country’s oil shipments.
Trump also said the U.S. could escort commercial vessels through the strait if necessary, signaling the possibility of further military involvement to keep the vital shipping route open.
Why The Strait Of Hormuz Matters To The Global Economy
O’Leary argued that keeping the narrow waterway open should become a global priority, comparing its importance to the Suez Canal, a key artery for international trade.
“If you look at the Suez Canal, we don’t have these kinds of shenanigans there because it’s too important for all global economies,” he said.
O’Leary suggested that a coalition of countries — particularly oil-producing nations — may ultimately need to fund a permanent security presence in the region.
It might cost billions, he said, but added that such spending would be “a fraction of what the disruption costs are occurring right now in the world.”
By Friday evening, energy markets showed mixed movement. WTI Crude April 2026 futures climbed 3.74% to $99.31 per barrel, while RBOB Gasoline Futures rose 3.40% to $3.07 per gallon and ULSD Heating Oil Futures advanced 2.34% to $3.99 per gallon.
Meanwhile, Natural Gas Futures slipped 3.12% to $3.13 per MMBtu (million British thermal units).
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
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