Fear Premium Drives Oil Rally, Trump Admin Claims
Trump's energy secretary argues the oil price surge is driven by fear and perception, not a shortage, even as disruptions such as the Strait of Hormuz, halted production, and refinery strikes affect supply. He calls the rise a temporary 'fear premium' while acknowledging real threats to flow. The White House is weighing responses like political risk insurance and naval escorts, and a sanctions waiver was issued to allow more Russian oil purchases by Indian refiners. Analysts say both fear and supply disruptions fuel volatility, even as the IEA notes a global surplus that could tighten if disruptions persist.