US President Donald Trump on Thursday offered to sell American oil to countries affected by the Iranian blockade of the Strait of Hormuz caused due to his war against the Islamic Republic. Although Washington unilaterally started the war alongside Israel late February, Trump put the burden on other countries to reclaim the narrow passage.
He told oil-importing countries to "take responsibility" to secure the waterway themselves. Oil from the Persian Gulf region mostly goes to Asian markets like India, China, Japan and South Korea.
"We don't need oil from the Hormuz strait. Those who import from there must take care of the passage," Trump said in an address from the White House, while highlighting America's status as the world's top energy producer.
"We will be helpful but they should take the lead to protect the oil. To those countries who can't get oil, many of which refused to be involved in the decapitation of Iran, I suggest buy oil from the US. Build up some delayed courage. Go to the Strait and just take it, protect is. Iran is decimated," he said.
A few days ago, Trump had called upon his NATO allies to support the US in securing vessels through the key shipping route which has been shut by the IRGC, while warning a "very bad future" if they refuse to help.
ALSO READ: Brent Crude Reverses Losses, Jumps Above $105 After Trump Threatens More Strikes On Iran
Crude oil prices rebounded sharply, erasing early losses, after Trump warned of intensified military action against Iran in the coming weeks.
Brent crude rose more than 5% to trade above $105 per barrel, while US West Texas Intermediate crude climbed as much as 3.2% to $103.27 per barrel. The rebound came after both benchmarks had declined earlier in the session. Brent had fallen 1.4% to around $99.70 per barrel after dropping as much as 1.8% intraday, while WTI had slipped as much as 2.4% to $97.70.
The International Energy Agency has warned that the supply disruption could intensify in April. IEA Executive Director Fatih Birol said supply losses next month could be twice as severe as in March, when shipments were supported by cargoes that had already cleared the Strait of Hormuz before the escalation. He estimated current disruptions at around 12 million barrels per day, exceeding previous oil crises.
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