EL7.AI
CommoditiesMediumUpdated×3•Originally published 18 May 2026•Updated 18 May 2026•
2 min read

Trump Warnings to Iran Lift Oil Prices as Kevin Warsh Confirmed as Fed Chair

Key Facts

1The oil and gas crunch caused by the war between the U.S., Israel, and Iran has cost global businesses $25 billion to date.
2As many as 279 companies cited the war as a reason for defensive actions, including price hikes and production cuts to cushion the blow from soaring energy prices.
3Some companies in the sample opted to suspend dividend payments and share buybacks due to the crisis impacts.

Oil prices rose on Monday following warnings from President Trump to Iran after reports of attacks, reversing the previous bearish trend tied to diplomatic progress. In a significant shift for monetary policy, the U.S. Senate confirmed Kevin Warsh as the new Federal Reserve Chair in a 54-45 vote. According to reports, the new Chair faces immediate pressure from President Trump to implement interest rate cuts despite persistent inflationary concerns.

These renewed geopolitical tensions add fresh volatility to the energy sector, where peers like ExxonMobil and Chevron have navigated supply chain disruptions per market data. Investors are closely monitoring how Warsh will balance inflation—which hit 3.8% in the U.S. and 2.9% in Germany in May 2026—against political demands for easing. The escalatory rhetoric toward Tehran threatens to reinstate the risk premium that had briefly dissipated following news of a potential nuclear freeze.

Brent crude settled at higher levels as of the May 18, 2026 close following the latest warnings. Traders are now looking toward the EIA crude oil inventory report on May 20, 2026, to assess physical market tightness. Additionally, the market awaits Kevin Warsh's first official remarks as Fed Chair for clues on the future interest rate trajectory. Current oil resistance levels will likely depend on the severity of the U.S.-Iran standoff and its impact on Gulf supply routes.

Latest Updates · 1

  1. Notable·

    Update: New pressures on the global financial system have emerged following reports of opaque oil transactions near the Strait of Hormuz, challenging the traditional dominance of the petrodollar. Analysts suggest these moves further complicate the geopolitical landscape, adding systemic risks that could impact global reserve currency stability alongside the ongoing energy crisis.