President Trump is also anxious to compel European allies to stop buying oil from Iran, which the Trump administration is trying to further isolate with sanctions and by pulling out of the 2015 nuclear deal signed between the United States, Iran, China, Russia, France, the United Kingdom, and Germany.
Should it succeed and Tehran's two million barrels a day be taken off the market, the cost of oil is likely to soar and cause a major headache for Trump domestically; the American public are known to be hostile to anything that increases the cost of filling up their cars.
In May, the USA retreated from a multilateral deal with Iran regarding its nuclear disarmament program, and imposed sanctions to limit the world's fourth largest oil exporter's access to global markets. Those who don't comply could face USA sanctions as part of Trump's withdrawal from the Iran nuclear deal.
U.S. President Donald Trump again accused the Organization of Petroleum Exporting Countries of driving gas prices higher on Twitter on Wednesday and urged the oil cartel's members to do more.
Every extra dollar on the price of a barrel of crude costs USA consumers roughly $3 billion a year, assuming refining margins and fuel taxes remain constant, and ignoring gasoline consumption by businesses and the like.
Trump's move comes as the world suddenly finds itself dangerously short of meeting rising global demand that's set to hit 100 million barrels per day by the fourth quarter, compared to 98.7 million during the same period previous year.
The OPEC Basket price per barrel of crude oil is about $74.
"If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz", Ismail Kowsari, an Iranian Revolutionary Guards commander, told Iran's Young Journalists Club, Reuters reported.
Antoine Halff, formerly a chief oil market analyst at the International Energy Agency and now senior fellow at Columbia University, said that Trump made three errors in his tweet: OPEC can influence market prices but is not a monopoly.
US West Texas Intermediate crude futures were down 16 cents, or 0.2 percent, at.98 per barrel.
In June, Iran's crude oil exports stood at 2.280 million bpd, and condensate exports were 330,000 bpd, Iran's oil ministry news service Shana reported earlier this week. Analysts had expected a drawdown of 4.4 million barrels. "OPEC has not defined oil prices for the past 30 years, it is a financial market and regional hubs for marker crudes who does it?"