US Energy Secretary Chris Wright, a former fracking executive, faces allegations of market manipulation after posting and swiftly deleting a false claim about naval operations in the Strait of Hormuz. On Tuesday, Wright asserted on social media platform X that the American Navy had “successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing.”
The post triggered immediate market reactions, with oil prices experiencing their most dramatic plunge in years according to Wall Street Journal reports. The Energy Department subsequently attributed the misinformation to staff who “incorrectly captioned” the post, while White House officials publicly acknowledged the statement’s inaccuracy. This incident occurs amid escalating tensions following the US-Israeli military campaign against Iran, which has threatened global oil supplies.
Hedge fund manager Spencer Hakimian questioned the financial implications, asking: “So who just made $100 million dollars shorting oil for the three minutes that Chris Wright had that post up?” The controversy drew international condemnation, with Iranian Foreign Minister Abbas Araghchi accusing US officials of “posting fake news to manipulate markets.”
Contrary to Wright’s deleted assertion, Reuters confirmed that the US Navy has consistently denied escort requests through the critical waterway due to heightened security risks. The strategic Strait of Hormuz handles approximately 31% of global seaborne crude oil, transporting 13 million barrels daily. Iran’s Revolutionary Guards have explicitly threatened vessels associated with nations attacking Iran, creating unprecedented market uncertainty that analysts compare to historical oil crises combined.
The situation intensified as UK Maritime Trade Operations reported a cargo vessel struck by an unknown projectile in the strait, forcing crew evacuation. Simultaneously, the US military claimed to have eliminated multiple Iranian naval vessels, including minelayers near the strategic passage. Senator Chris Murphy (D-Conn.) revealed after a classified briefing that the administration “had no plan” for securing the strait despite the predictable consequences of military action against Iran.