NATO: Trump says US may quit, calls alliance a 'paper tiger'

President Donald Trump sharply criticized NATO on March 20, describing the alliance as a "paper tiger" if the United States were not contributing and saying he may consider withdrawing the US from the pact amid disputes over security in the Strait of Hormuz. His remarks intensified tensions between Washington and several European capitals.

Trump's comments, posted on his social media account, accused allies of being "cowards" for refusing to participate in an international effort to escort commercial shipping through the Strait of Hormuz and reopen a vital energy corridor. Several governments declined to join a U.S.-led operation, citing the risk of being drawn into the widening conflict with Iran. The controversy has prompted terse diplomatic exchanges.

The dispute coincided with U.S. military preparations to reinforce forces in the region; U.S. officials told the Washington Post that additional ships and Marine units were being readied to support operations if required. Those moves, together with the closure of key shipping lanes, pushed markets to reprice geopolitical risk and supply outage probabilities.

Energy markets reacted quickly: international benchmarks for crude oil spiked and briefly traded above $100 a barrel as the potential for prolonged disruptions to Hormuz shipping boosted the risk premium. Major banks and brokerage houses have upgraded near-term price forecasts, warning that sustained closure or constrained flows through the strait would keep oil prices elevated and increase inflationary pressures globally.

Strategists say the episode underscores fragility in alliance politics and the direct economic transmission of geopolitical shocks. In the near term, analysts expect continued volatility in oil and related markets; diplomatically, the incident may trigger renewed discussions among NATO members about burden-sharing and regional security arrangements, while markets will monitor any concrete commitments from allies that could reduce the Hormuz risk premium.