‘We’ll do whatever is necessary’: As Iran conflict rattles oil markets, Trump hints at keeping Russian oil door open
The United States had relaxed sanctions on Russian oil in mid-March after disruptions caused by the closure of the Strait of Hormuz created concerns over international oil supply. The temporary relief was initially scheduled to end on April 11 but was later extended to May 16.
by Zee Media Bureau · Zee NewsWashington: US President Donald Trump has said Washington is ready to take further steps to deal with rising crude oil prices as the conflict with Iran continues to affect energy markets across the world.
Speaking to journalists on Tuesday (May 12), he suggested that all options were on the table. He was asked whether his administration would extend the waiver on sanctioned Russian oil imports to ease pressure on crude prices.
“We are going to do whatever is necessary, and as soon as this war is over, which will not be long, you are going to see oil prices drop and see a stock market, which is already at the highest point in history, go through the roof,” Trump said.
The United States had relaxed sanctions on Russian oil in mid-March after disruptions caused by the closure of the Strait of Hormuz created concerns over international oil supply. The temporary relief was initially scheduled to end on April 11 but was later extended to May 16.
Along with the Russian oil waiver, Trump has also taken several domestic energy measures. His administration tapped into America’s Strategic Petroleum Reserve, pushed for higher domestic oil production and eased shipping regulations inside the United States. Temporary sanctions relief was also granted for oil from Iran and Venezuela.
US president predicts inflation drop after war
Trump said the US economy was heading toward what he described as a “Golden Age”, adding that inflation would fall once the America-Iran confrontation comes to an end.
“You are going to see the Golden Age of America, frankly, and you are seeing it now. So as soon as this is, don't forget, you have hundreds of ships that are loaded up with oil that want to come out. As soon as they come out, we are going to have a gusher of oil and you are going to have inflation that goes way down,” he said.
The US president compared present inflation levels with those during former President Joe Biden’s tenure and claimed the numbers could fall even further after the war.
“Inflation is much lower than it was under Biden. Biden had the highest inflation in the history of our country. Inflation is nothing by comparison, but our inflation is just short-term. Because if you go back to just before the war, we were at 1.7% for the last three months. As soon as this war is over, you are going to see inflation go down to probably 1.5%,” Trump said.
Before leaving for China, he also talked about possible diplomatic outcomes involving Iran and said any future agreement would be “very good” for both Americans and Iranians.
At the same time, he repeated his hardline position on Iran’s nuclear programme and claimed that Tehran’s military capabilities had been badly damaged.
“It’s a very simple message: Iran cannot have a nuclear weapon, and they won't have a nuclear weapon, and that's 100%. Their Navy's gone, their Air Force is gone, their anti-aircraft is gone, their radar is gone, their leaders are gone. They are all gone. Iran will not have a nuclear weapon,” he said.
Trump's close political ally questions Pakistan’s role
The developments come as Republican Senator Lindsey Graham questioned Pakistan’s credibility as a possible mediator in negotiations with Iran.
Speaking during a Senate Appropriations Committee hearing with US Defence Secretary Pete Hegseth, he raised concerns over reports that Iranian military aircraft had been stationed at Pakistan’s Nur Khan Airbase near Rawalpindi after the ceasefire announcement earlier this year.
“I don't trust Pakistan as far as I can throw them. If they actually do have Iranian aircraft parked in Pakistan bases to protect Iranian military assets, that tells me we should be looking maybe for somebody else to mediate. No wonder this damn thing is going nowhere,” Graham said.
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During the hearing, he directly asked Hegseth whether the reported presence of Iranian aircraft on Pakistani soil was “consistent with (Pakistan) being a fair mediator”.
Hegseth avoided taking a direct position and said he did not want to interfere in ongoing negotiations.
Earlier, Graham had also posted on X that he would “not be shocked” if the reports turned out to be accurate. He pointed to earlier comments made by Pakistani officials regarding Israel.
“If this (media) reporting is accurate, it would require a complete reevaluation of the role Pakistan is playing as mediator between Iran, the United States and other parties. Given some of the prior statements by Pakistani defense officials towards Israel, I would not be shocked if this were true,” he wrote.
According to a report by CBS News, Iran sent several aircraft to Nur Khan Airbase shortly after Trump announced the ceasefire in early April. The report surfaced at a time when Pakistan had also confirmed receiving Iranian peace proposals meant to be shared with the United States.
Pakistan has rejected the allegations and described the reports as “misleading and sensationalised”. In its official response, Pakistan’s Foreign Office said the Iranian aircraft arrived after initial ceasefire negotiations and had “no linkage” to any military arrangement or contingency planning. Islamabad also claimed that such “speculative narratives” were aimed at undermining regional peace efforts.
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Trump, meanwhile, said there was “no need to rush” negotiations with Iran as economic pressure on Tehran continued. “We don't have to rush anything. We have a blockade which allows them no money. It's a very simple thing – we cannot let them have a nuclear weapon because they would use it,” he said during an interview with New York’s TalkRadio 77 WABC.
When asked whether the United States could stop Iran from enriching uranium or building a nuclear bomb, he replied, “100%. They are going to stop, and they told me, the Iranians told me... they said that we are going to get the dust.”