Trump warns prolonged Middle East war could trigger economic disaster

After the G7 summit in Evian-les-Bains and in an Axios interview, Trump said he backed a U.S.-Iran understanding and warned bombing and Strait of Hormuz disruption could cause a global recession.

Summary

U.S. President Donald Trump said he did not want the war in the Middle East to continue and warned that a prolonged conflict could cause an economic disaster. After the G7 summit in Evian-les-Bains, France, he said he supported an agreement or memorandum of understanding between the United States and Iran. In an Axios interview on June 18, he said the effort was meant to avoid a global recession if continued bombing led to the closure of the Strait of Hormuz, a critical oil shipping chokepoint, and said the U.S. had imposed a naval blockade. Axios, citing sources, reported that Trump was privately concerned a prolonged shutdown of the strait could trigger a global oil crisis. Trump also said he did not want to become "another Herbert Hoover."

Terms & Concepts
  • Strait of Hormuz: A critical oil shipping chokepoint whose disruption can affect global energy markets.
  • memorandum of understanding: A nonbinding agreement outlining mutual intentions between parties.
  • naval blockade: The use of naval forces to restrict access to a maritime area.