Reuters reported on Wednesday, citing a White House official, that US President Donald Trump met senior leaders from Chevron and other large energy companies to discuss global oil markets during the Middle East conflict.
The official said Trump discussed steps with oil companies to maintain the Iran blockade for months if needed.
Trump Engagement With Energy Firms
After the report, the US Dollar Index moved up and was last at 98.85, up 0.26% on the day.
Looking back from our perspective in 2025, we recall how the Trump administration’s direct engagement with energy firms signaled a hawkish stance on Iran. Today, with renewed diplomatic friction in the Middle East, we are seeing a similar pattern of rhetoric that could disrupt global oil supplies. This history suggests traders should prepare for heightened volatility in the coming weeks.
We believe the most direct impact will be on crude oil derivatives, as any threat to supply will create upward price pressure. Implied volatility on WTI crude options has already climbed to 38%, a sharp increase from the 22% average we saw in the first quarter of 2026. This makes buying call options or call spreads on oil futures an attractive strategy to capture potential price spikes while defining risk.
This geopolitical tension also supports the energy sector, as higher crude prices directly benefit producers. We have seen the Energy Select Sector SPDR Fund (XLE) gain over 6% this month, outpacing the broader S&P 500. Traders could use options on stocks like Chevron (CVX) to play this trend, as they stand to gain from any prolonged period of elevated oil prices.
Dollar Strength And Safe Haven Flows
Furthermore, we should anticipate a strengthening U.S. dollar, which historically acts as a safe-haven asset during global uncertainty. The U.S. Dollar Index (DXY) has already pushed through the 106.00 level for the first time this year, a reaction to capital flowing into American markets. Long positions in the dollar against the currencies of oil-importing nations could perform well.
This is a familiar scenario, reminiscent of the price shocks we saw during the initial phase of the Ukraine conflict in 2022. During that period, Brent crude briefly surged above $120 per barrel on supply fears before settling down. Historical data suggests that these geopolitical premiums can build quickly, rewarding traders who position themselves ahead of major developments.
