{"id":59833,"date":"2026-03-16T13:38:18","date_gmt":"2026-03-16T17:38:18","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/trump-predicts-rapid-oil-price-drop-as-middle-east-tensions-escalate-lme-resumes-trading\/59833\/"},"modified":"2026-03-16T13:38:18","modified_gmt":"2026-03-16T17:38:18","slug":"trump-predicts-rapid-oil-price-drop-as-middle-east-tensions-escalate-lme-resumes-trading","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-predicts-rapid-oil-price-drop-as-middle-east-tensions-escalate-lme-resumes-trading\/59833\/","title":{"rendered":"Trump Predicts Rapid Oil Price Drop as Middle East Tensions Escalate; LME Resumes Trading"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Donald Trump<\/strong> forecasts a <strong>rapid decline in oil prices and inflation<\/strong> once regional conflicts conclude, asserting that the <strong>U.S. does not need oil<\/strong> from the Strait of Hormuz.<\/li>\n<li>The <strong>IDF<\/strong> confirmed a direct strike on an <strong>Iranian intelligence command center in Tehran<\/strong>, marking a significant escalation in the conflict.<\/li>\n<li>The <strong>London Metal Exchange (LME)<\/strong>, owned by Hong Kong Exchanges and Clearing (<a href=\"\/stock\/0388.HK\">0388.HK<\/a>), is set to resume electronic trading at <strong>17:30 GMT<\/strong> following an earlier disruption.<\/li>\n<li>Two explosive drones targeted <strong>Iraq\u2019s southern Majnoon oilfield<\/strong>, though security sources report no casualties or immediate impact on production.<\/li>\n<li>The <strong>European Union<\/strong> is proposing a <strong>full phase-out of Russian oil<\/strong>, while simultaneously demanding a timeline for the restoration of the <strong>Druzhba oil pipeline<\/strong>.<\/li>\n<\/ul>\n<h2>Trump Signals Confidence in Energy Markets and Diplomacy<\/h2>\n<p>Former President <strong>Donald Trump<\/strong> stated today that <strong>oil prices and inflation will &quot;go down rapidly&quot;<\/strong> once current military conflicts are resolved. Addressing concerns over the <strong>Strait of Hormuz<\/strong>, Trump noted that while the U.S. could open the waterway, &quot;it takes two to tango,&quot; though he expressed confidence that shipping would resume &quot;very soon.&quot;<\/p>\n<p>Trump emphasized <strong>U.S. energy independence<\/strong>, claiming the nation &quot;doesn&#39;t need oil&quot; from the region. He also revealed that he spoke with French President <strong>Emmanuel Macron<\/strong> regarding maritime security, expressing confidence that <strong>France<\/strong> and other &quot;fairly local&quot; nations would assist in securing the strait.<\/p>\n<p>Regarding the broader conflict, Trump dismissed fears of <strong>nuclear escalation<\/strong>, stating he does not believe <strong>Israel<\/strong> would use such weapons. He further claimed that <strong>Hezbollah<\/strong> is being &quot;rapidly eliminated&quot; and suggested that certain factions within <strong>Iran<\/strong> are seeking a dialogue, though their identities remain unclear.<\/p>\n<h2>Military Escalation and Humanitarian Crisis<\/h2>\n<p>The <strong>IDF<\/strong> announced a high-profile operation striking an <strong>Iranian intelligence command center<\/strong> located within <strong>Tehran<\/strong>. This move follows a series of regional skirmishes, including a drone attack on <strong>Iraq\u2019s Majnoon oilfield<\/strong>, which underscores the persistent threat to global energy infrastructure.<\/p>\n<p>In <strong>Lebanon<\/strong>, the humanitarian situation has reached a breaking point as the government reports the number of <strong>displaced people has exceeded one million<\/strong>. <em>Market analysts warn that while energy prices are currently volatile, the long-term impact may manifest as weakened global demand rather than a permanent inflation cycle.<\/em><\/p>\n<h2>EU Policy and Market Infrastructure<\/h2>\n<p><strong>EU Energy Commissioner Dan J\u00f8rgensen<\/strong> informed <strong>Ukraine<\/strong> that the bloc expects a clear timeline for the reopening of the <strong>Druzhba oil pipeline<\/strong>. The EU is concurrently moving toward a <strong>total ban on Russian oil<\/strong>, urging all member states to finalize their transition plans immediately.<\/p>\n<p><strong>EU High Representative Kaja Kallas<\/strong> reaffirmed that the bloc\u2019s primary focus remains <strong>de-escalation and freedom of navigation<\/strong>. Kallas noted that <strong>Moscow<\/strong> stands to benefit from higher energy prices and the diversion of air defenses from <strong>Ukraine<\/strong> to the Middle East, emphasizing that &quot;this is not Europe&#39;s war.&quot;<\/p>\n<p>In financial markets, the <strong>London Metal Exchange<\/strong> confirmed it will resume electronic trading at <strong>5:30 PM London time<\/strong>. <em>The resumption is expected to stabilize base metal volatility, which has been exacerbated by the geopolitical uncertainty and fluctuating energy costs impacting headline CPI.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Donald Trump forecasts a rapid decline in oil prices and inflation once regional conflicts conclude, asserting that the 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