Rising U.S.-Iran tensions have intensified after the Trump administration targeted Iran’s Kharg Island terminal, which handles nearly 90% of the nation’s oil exports. Iran has threatened to mine the Strait of Hormuz, a narrow but crucial passage for global energy shipments.
On Saturday, the U.S. president declined Iran’s offer to negotiate a ceasefire and also hinted at the possibility of more strikes on Iran, signaling a potential escalation of tensions.
Global Warning
‘Shark Tank’ Star Kevin O’Leary warned the market of the broader impact of this in a post late Saturday.
“Oil is the only commodity used in every single sector of every economy. Even our adversaries need it,” he said.
O’Leary also criticized alternative energy efforts, saying billions spent on wind and solar have not proven reliable under real-world pressures. “It didn’t work,” he wrote on X.
The Canadian businessman added that a global shift toward hydrocarbon-friendly policies was likely following the crisis. “Expect to see more pro-hydrocarbon policy globally after this.”
Analyst Samo Burja reinforced the structural importance of oil in his Thursday post on X, noting that it underpins manufacturing, transportation and global production.
Separate But Parallel Warning
In a recent Fox News appearance, O’Leary cautioned that if oil prices remain above $90–$100 for more than 90 days, gasoline could surpass $3 per gallon, calling energy the “granddaddy issue” heading into the U.S. midterm elections.
Earlier, O’Leary noted that absent geopolitical tensions, crude would likely trade between $55–$70 per barrel — a level he described as where “the economy works just fine.”
Photo courtesy: Kathy Hutchins / Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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