{"id":65233,"date":"2026-07-22T16:08:14","date_gmt":"2026-07-22T20:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-predicts-oil-price-collapse-amid-escalating-iran-conflict-and-diplomatic-exodus\/65233\/"},"modified":"2026-07-22T16:08:14","modified_gmt":"2026-07-22T20:08:14","slug":"trump-predicts-oil-price-collapse-amid-escalating-iran-conflict-and-diplomatic-exodus","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-predicts-oil-price-collapse-amid-escalating-iran-conflict-and-diplomatic-exodus\/65233\/","title":{"rendered":"Trump Predicts Oil Price Collapse Amid Escalating Iran Conflict and Diplomatic Exodus"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Brent crude surged above $95 per barrel<\/strong> on Wednesday as the U.S. and Iran traded fresh military strikes, marking a six-week high for global energy benchmarks.<\/li>\n<li><strong>President Donald Trump predicted <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> will &quot;come tumbling down&quot;<\/strong> despite current elevations, citing potential deals and increased production cooperation with <strong>Venezuela<\/strong>.<\/li>\n<li><strong>The United Kingdom has evacuated all diplomatic staff from Iran<\/strong> due to a rapidly deteriorating security situation, moving embassy operations to a remote status.<\/li>\n<li><strong>U.S. Central Command (CENTCOM) debunked Iranian claims<\/strong> of controlling the Strait of Hormuz, confirming that over 900 commercial vessels have transited with U.S. military support since May.<\/li>\n<li><strong>Trump issued a severe warning to Tehran<\/strong>, vowing to destroy one Iranian bridge or power plant for every ship attacked in the Strait of Hormuz.<\/li>\n<\/ul>\n<h2>Market Volatility and Trump\u2019s Oil Outlook<\/h2>\n<p>Global energy markets experienced significant turbulence on July 22, 2026, as <strong>Brent crude<\/strong> (<a href=\"\/stock\/BZ=F\">BZ=F<\/a>) rose more than <strong>3% to $95.24 per barrel<\/strong>. This price action follows the 11th consecutive night of U.S. airstrikes against Iranian military targets. Despite the upward pressure, <strong>President Donald Trump<\/strong> maintained a bearish long-term outlook for energy, stating that &quot;oil will come tumbling down&quot; as prices are already beginning to soften in certain sectors.<\/p>\n<p>Trump highlighted that the U.S. is no longer reliant on the <strong>Strait of Hormuz<\/strong> for its energy security. He specifically noted that <strong>Venezuela<\/strong> is now working closely with the U.S. to ramp up oil production, providing an alternative supply chain that could eventually stabilize global markets. <em>Analysts suggest this shift in strategy aims to insulate the U.S. economy from Middle Eastern supply shocks ahead of the fall midterm elections.<\/em><\/p>\n<h2>Escalation in the Strait of Hormuz<\/h2>\n<p>Tensions reached a boiling point as Iran\u2019s <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> Navy claimed total control over entry and exit routes in the <strong>Strait of Hormuz<\/strong>. U.S. officials immediately labeled these claims as <strong>FALSE<\/strong>, asserting that the international waterway remains open. <strong>CENTCOM<\/strong> reported that American forces have provided critical escort and support to over <strong>900 ships<\/strong> in the region since early May to ensure the continued flow of commerce.<\/p>\n<p>In a direct message posted to social media, Trump warned that any further Iranian interference with maritime traffic would meet a symmetrical response. He pledged that the U.S. would target <strong>civilian infrastructure<\/strong>, including bridges and power plants in or near <strong>Tehran<\/strong>, for every vessel targeted by Iranian missiles or drones. <em>This &quot;eye for an eye&quot; doctrine has drawn criticism from international bodies but signals a hardening of the U.S. military posture.<\/em><\/p>\n<h2>Diplomatic Breakdown and Regional Mediation<\/h2>\n<p>The geopolitical landscape grew more isolated as the <strong>United Kingdom<\/strong> announced the temporary withdrawal of its diplomatic staff from Iran. The <strong>Foreign, Commonwealth and Development Office (FCDO)<\/strong> cited the &quot;ongoing security situation&quot; as the primary driver for the evacuation, advising all British nationals to leave the country immediately.<\/p>\n<p>Amid the exodus of Western diplomats, regional powers are attempting to fill the vacuum. The ambassadors of <strong>Pakistan<\/strong>, <strong>Saudi Arabia<\/strong>, and <strong>China<\/strong> met at the Pakistani embassy in Tehran to coordinate a response to the escalating hostilities. While Trump noted that Iran is &quot;getting hit so hard they want to make a deal,&quot; <strong>Secretary of State Marco Rubio<\/strong> cautioned that Tehran does not yet appear ready for serious negotiations, despite the mounting economic and military pressure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Brent crude surged above $95 per barrel on Wednesday as the U.S. and Iran traded fresh military strikes, 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