President Trump pressures Saudi Arabia, OPEC to slash oil prices

President Donald Trump pledged to pressure Saudi Arabia and other OPEC nations to reduce oil prices while reiterating his willingness to use tariffs to achieve U.S. economic goals.

Speaking at the World Economic Forum in Davos on Thursday, Trump expressed surprise that OPEC had not acted sooner to lower oil prices, which he claimed were indirectly financing the Russia-Ukraine war.

“You’ve got to bring down the oil price; that will end that war,” Trump said, suggesting lower prices would cut Moscow’s revenue streams. His remarks followed a conversation with Saudi Crown Prince Mohammed bin Salman, during which the Crown Prince reportedly committed to investing $600 billion in the U.S. over four years—a figure absent from the White House’s official summary. Trump added that he urged bin Salman to increase the pledge to $1 trillion.

Crude oil prices dipped 1% after Trump’s comments, though analysts, including David Oxley of Capital Economics, warned that Saudi Arabia might not comply with U.S. demands to expand production. Oxley also noted that lower oil prices could discourage U.S. domestic production, particularly in higher-cost regions like Alaska.

In his first global address since returning to the presidency, Trump also called for global manufacturers to shift production to the U.S., threatening steep tariffs on imported goods. While some Davos delegates welcomed his speech as a push for “fair trade,” others criticized his rhetoric as detrimental to global economic cooperation.

Trump’s wide-ranging address included a demand for immediate interest rate cuts, blaming his predecessor, Joe Biden, for “economic calamity” caused by $8 trillion in deficit spending and restrictive energy policies.

He also announced plans to boost “good, clean coal” production to meet the energy demands of artificial intelligence.