US stocks rose on Tuesday as oil prices dropped as President Trump signaled the war in Iran will be limited – though the drop slowed after the Trump administration walked back a claim that an oil tanker had been escorted through an Iranian energy chokepoint.
The Dow Jones Industrial Average rose 126 points, or 0.3%, while the Nasdaq increased 0.2% and the S&P 500 traded roughly flat after President Trump said the war was “very complete, pretty much,” and G7 energy ministers met to discuss the potential release of oil reserves.
West Texas Intermediate crude oil and Brent crude each plummeted more than 10% to $81.20 and $82.83 a barrel, respectively – well below levels near $120 the previous day.
But the decline slowed after Energy Secretary Chris Wright deleted a social media post claiming the US Navy had successfully escorted an oil tanker through a key Iranian waterway known as the Strait of Hormuz, which carries 20% of the world’s oil supply.
During a press briefing Tuesday afternoon, White House press secretary Karoline Leavitt said she has not yet spoken to Wright about the post, but confirmed that it was false.
“I can confirm that the US Navy has not escorted a tanker or a vessel at this time, though of course that’s an option the president has said he will absolutely utilize if and when necessary at the appropriate time,” she told reporters.
The Department of Energy did not immediately respond to The Post’s request for comment.
