Cecilia Ley

Yesterday, Trump has said that, if necessary, the U.S.

Navy would begin escorting ships as soon as possible.

If trade doesn't start moving again soon, it could harm exports and diminish storage capacity for oil producers.

While this could dent Trump's ambitions to bring down inflation, Halper notes that the U.S.

is in a relatively stable position, at least for now.

As for broader inflation, the head of JPMorgan Chase, Jamie Dimon, told CNBC on Monday the impact on consumers would likely be limited if the conflict doesn't last long.

It's not clear when U.S.

support might reach the strait, but shipping sources told Reuters that it may not be enough and that as long as the fighting continued, traders would be nervous about using the route.

Trump gave a warm welcome to German Chancellor Friedrich Merz at the White House yesterday, thanking the leader for his support of the war in Iran.

He also used the meeting as an opportunity to lash out at other European countries he felt had not lined up behind the intensifying military action.

First, Trump threatened Spain.

The U.S.

had been forced to relocate aircrafts after the Spanish prime minister denied U.S.

military use of their bases to attack Iran.

Trump said he's asked his Treasury Secretary, Scott Besant, to look into a trade embargo without providing any details of how that might work.

Then he turned to the UK and its Prime Minister Keir Starmer.

The US wanted to use British military bases for their initial strikes, but Starmer refused, only later giving permission for limited and defensive use.

The U.K.

was careful to avoid explicit support for the strikes.

And on Monday, Starmer defended his decision to reject the U.S.