Energy markets experienced significant volatility for the second consecutive day on Tuesday, as investors struggled to interpret the rapidly shifting statements from the Trump administration regarding the conflict with Iran.
Oil prices fell sharply after Energy Secretary Chris Wright mistakenly posted and subsequently deleted a message on social media claiming the U.S. Navy had escorted a tanker through the Strait of Hormuz. However, White House Press Secretary Karoline Leavitt later clarified that no such action had taken place. She told reporters, "The U.S. Navy has not escorted any tankers or vessels at this time." The spokesperson added that the U.S. military is "developing more options" to counter any Iranian attempts to restrict trade through the critical waterway.
Later on Tuesday, President Trump posted a series of messages on social media. First, he insisted the U.S. had "not received" reports of mines being laid, but then urged Iranian forces to clear any explosives they might have deployed. Subsequently, Trump stated the U.S. was "using the same technology and missile capabilities deployed against drug traffickers" to target minelaying vessels. Minutes later, he reported that the U.S. had "struck and completely destroyed 10 inactive minelaying boats" and promised "more to come."
Secretary Wright's social media error and President Trump's erratic posts about naval mines illustrated the confusing messaging that has frustrated observers in Washington and Wall Street as the conflict entered its eleventh day. Following the Energy Secretary's post, oil prices initially plummeted nearly 20%, with U.S. WTI crude briefly falling below $77 per barrel, though losses narrowed as more information emerged.
Earlier on Tuesday, U.S. officials indicated military operations against Iran were escalating and the possibility of diplomatic negotiations was slim, contradicting Trump's earlier suggestion that the conflict might be resolved quickly. Trump's comments on Monday, stating he believed U.S. military objectives had largely been achieved, contrasted with statements from senior officials, including the Defense Secretary, who had indicated the conflict was just beginning.
"This is the same problem we faced when negotiating with them—do they genuinely want a diplomatic solution here?" said Trump's envoy Steve Witkoff in an interview with CNBC. "So far, the evidence suggests not."
The Pentagon reinforced this message earlier in the day, stating that the U.S. and Israel were conducting their most intense attacks on Iran to date and would not relent until Iran was defeated—striking a more assertive tone than Trump's Monday remarks hinting the conflict might be nearing an end.
"We will not ease up until the enemy is decisively and completely defeated," Defense Secretary Pete Hegseth stated during a press briefing on Tuesday. "We do this on our own timeline and according to our own choices."
These statements suggest Washington is not seeking to de-escalate a conflict that has spread across the Middle East and pushed regional energy giants toward a crisis point. Leavitt confirmed that approximately 150 U.S. military personnel have been injured so far.
The critical Strait of Hormuz remains almost entirely closed, with Saudi Arabia, Iraq, the UAE, and Kuwait all having significantly reduced output.
When asked earlier about a potential negotiation with Iran, Trump expressed openness but made no commitment, according to a Fox News report. Iranian officials rejected the idea, with Parliament Speaker Mohammad Bagher Qalibaf stating the country "absolutely" does not seek a ceasefire.
The Department of Energy attempted to explain the erroneous social media post, stating it was "miscaptioned by Energy Department staff." A spokesperson said, "A video clip was deleted from Secretary Wright's official X account after it was determined that Energy Department staff had added incorrect captions." The spokesperson added, "President Trump, Secretary Wright, and other members of the presidential energy team are closely monitoring the situation, speaking with industry leaders, and having the U.S. military develop additional options to keep the Strait of Hormuz open, including the possibility of our Navy escorting tankers."
As the war entered its second week, the U.S. and Israel continued their bombing campaigns. Iran responded by launching drones and missiles at targets across the Middle East.
There are initial signs that Iranian attacks on some countries, including the UAE, may be diminishing. Leavitt said on Tuesday that the U.S. is working to destroy Iran's missile production facilities. Australia, South Korea, and the UK are also assisting in bolstering the defenses of Gulf allies or are evaluating requests to do so.
Although missile and drone interceptions continue, airlines in the Persian Gulf are gradually beginning to resume flights. Thousands of passengers remain stranded at various locations due to the war's impact on air travel.
According to the semi-official Mehr News Agency, Iranian President Pezeshkian stated that Tehran is prepared to de-escalate the conflict, "provided the airspace, territory, and waters of neighboring countries" are not used to launch attacks against Iran.
Pezeshkian made these remarks during a phone call with Turkish President Erdogan. This followed NATO's air defense systems intercepting an Iranian missile in Turkish airspace on Monday. NATO is increasing its air defense presence in southeastern Turkey, where the U.S. operates a critical radar supporting NATO's ballistic missile defense system.
Israeli forces continued attacks in southern Lebanon on Tuesday, aiming to weaken the Iran-aligned Hezbollah. According to the Lebanese Health Ministry, approximately 486 people have been killed in the country.
A report by Axios, citing three informed sources, indicated that the U.S. and Israel disagree on the latter's attacks on Iranian energy infrastructure. Earlier this week, U.S. Senator Lindsey Graham urged Israel to choose its targets carefully.
Having campaigned on a promise not to entangle the U.S. in prolonged foreign wars, further American casualties and sustained high gasoline prices could impact Republican prospects in the November midterm elections.
On Tuesday, U.S. lawmakers displayed deep partisan divisions over the war as senators left a classified briefing with Pentagon officials.
Democratic Senator Richard Blumenthal stated, "This briefing failed to convince me that we have clear objectives, a strategy, or an exit plan." However, Republican Senator Mike Rounds defended the administration, saying, "The President made the right call on this matter, and his judgment about the threats involved was correct."
