Trump Admits Global Oil Reserves Will Last Only Four Weeks Without Iran Deal

United States President Donald Trump has acknowledged that global oil reserves are at a critical juncture, a development that has pressured Washington to accept Iran’s terms for a framework agreement to end the war and reopen the Strait of Hormuz. Speaking at the G7 summit in France on Wednesday (17/6) local time, Trump said that without a deal with Iran, the world would face “chaos” because oil reserves would run out in approximately four weeks. “We are going to run out of reserves in about four weeks,” Trump told reporters. “You know, there are reserves all over the world, and we are going to literally run out, and there will be a time when you won’t be able to get it,” he added. The US President admitted that sustained military strikes would keep the Strait of Hormuz, vital for global oil trade, closed. “If we keep bombing, those ships aren’t going to be able to sail,” he said, referring to the impact of an agreement with Tehran. Trump’s acknowledgement highlights the effectiveness of Iran’s strategy in imposing restrictions on the strategic waterway, which normally carries about one-fifth of the world’s oil consumption. His statement came as the US and Iran finalised a memorandum of understanding that directly ends the war and military operations on all fronts, including Lebanon. The deal also provides for the lifting of the US naval blockade and the reopening of the Strait of Hormuz. Previously, Iranian officials consistently stated that the closure of the strait was a legitimate defensive action in response to unprovoked aggression. Currently, the presidents of both countries have signed the peace agreement documents to end the war. Trump signed the memorandum of understanding during a dinner with French President Emmanuel Macron at the Palace of Versailles following the G7 summit meeting on Wednesday (17/6) evening. “Just signed it,” Trump said as he left the palace. Separately, the Iranian government also confirmed it had signed the agreement documents to end the war with the US. “The text of the Islamabad Memorandum of Understanding has been finalised with the signatures of the presidents – now it is time to test the implementation of the agreement,” said Iranian Foreign Ministry spokesman Esmaeil Baqaei. He said the signing was done electronically and remotely by both presidents, and that an official ceremony “does not have much place” in Iran’s plans.