Trump Threatens NATO Exit as Oil Prices Surge Above $105 on Iran War Escalation
WASHINGTON D.C. | April 2, 2026 | Breaking News
President Donald Trump has sent shockwaves through global financial and security circles. He said he is “absolutely” considering withdrawing the United States from NATO, citing the alliance’s refusal to join U.S. military action against Iran.He made the announcement in a primetime address on Wednesday night. However, he gave no clear plan to reopen the Strait of Hormuz, which carries about 20% of the world’s oil.
Oil markets reacted sharply. Following Trump’s address, Brent crude rose above $105 per barrel, while West Texas Intermediate also climbed past $103. Meanwhile, prices had already jumped more than 60% over the past month, marking the biggest rise since 1988, as Iran effectively closed the Strait of Hormuz after U.S. and Israeli strikes began on February 28.
Trump, speaking from the White House Cross Hall, told allies to take responsibility for the Strait’s security, saying: ‘That’s not for us.’ He urged allied nations to ‘build up some delayed courage, go to the Strait, and just take it.’ The remarks drew immediate criticism from European capitals. France’s junior army minister Alice Rufo called NATO operations in the Strait a ‘breach of international law.’
U.S. gas prices have passed $4 per gallon for the first time since 2022. Fuel shortages in Asia and Europe are worsening the impact of the Iran war. NATO chief Mark Rutte will meet Trump in Washington next week as allies try to avoid a split. Markets remain tense as traders watch for signs of a ceasefire or talks.
