Trump Advisor Urges Iran Exit as Oil Market Reels From Supply Shock

Edgen Stock·Mar 14 2026, 16:08

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Key Takeaways

David Sacks, an advisor to Donald Trump, has called for the United States to withdraw from its conflict with Iran, citing risks of catastrophic escalation. His comments come as the war has already triggered extreme volatility in energy markets, with the IEA flagging the largest oil supply disruption in history and crude prices spiking on fears of extended supply interruptions.

A prominent Trump advisor, David Sacks, has publicly urged the U.S. to 'declare victory and get out' of the Iran conflict to avoid catastrophic escalation.
The conflict cut Middle East oil output by 10 million barrels per day, helping drive West Texas Intermediate (WTI) crude futures up 6.46% to $96.77 in the week ending March 12.
Sacks warned that continued escalation could provoke Iranian attacks on critical Gulf infrastructure, including oil facilities and desalination plants that supply water to 100 million people.

Trump Advisor Warns of 'Catastrophic' Risk From Iran Conflict

On March 14, David Sacks, an advisor to Donald Trump on AI and cryptocurrency, called for an immediate de-escalation of the U.S. conflict with Iran. Speaking on the "All-In Podcast," Sacks stated it is a "good time to declare victory and get out," arguing that the U.S. had successfully degraded Iran's military capabilities. He warned that a prolonged war could see Israel get "destroyed" and raised concerns about retaliatory strikes on vital infrastructure.

Sacks outlined a dangerous scenario where Iran targets Gulf state oil facilities and desalination plants, which supply drinking water to an estimated 100 million people on the Arabian Peninsula. He argued for pursuing a negotiated settlement, stating, "If escalation doesn’t lead anywhere good, then you have to think about, well, how do you de-escalate?"

War Triggers Historic 10M Barrel Per Day Supply Disruption

The call for an exit path comes as the conflict severely disrupts global energy markets. The International Energy Agency (IEA) declared the situation the largest oil supply disruption in history, with Middle Eastern output falling by approximately 10 million barrels per day. This shock rippled through markets, with West Texas Intermediate (WTI) crude futures rising 6.46% to close at $96.77 for the week of March 8-12.

The price action was driven by fears that Iran could disrupt shipping through the Strait of Hormuz, a chokepoint for one-fifth of the world's seaborne oil supply. In response to the market turmoil, the IEA coordinated the largest-ever emergency release from strategic reserves, pledging 400 million barrels, with the U.S. contributing 172 million barrels. However, traders remain focused on the physical risk to supply as long as the conflict continues.

Oil Traders Eye $98 Resistance as De-escalation Talk Surfaces

Sacks' comments introduce a new variable for energy traders, who have been pricing in a significant geopolitical risk premium. A potential de-escalation could ease supply fears and weigh on crude prices that have been highly sensitive to military headlines. The market remains volatile, reacting to reports of attacks on tankers and energy facilities in the Gulf region.

Technically, traders are watching key price levels for WTI crude. The range between $98.11 and $103.15 is seen as a major resistance zone. A failure to break above this area could signal that sellers are taking control, while a sustained move higher could challenge the recent peak near $119.48. Conversely, a drop below this zone could see prices test support between $87.06 and $79.40.