The White House is reportedly considering a range of options to address spiking oil prices, which have surpassed $US100 a barrel amid concerns stemming from the conflict involving Iran. President Trump is expected to review these options as early as Monday (Tuesday AEDT), according to sources familiar with the matter. The administration is concerned that rising oil prices could negatively impact US businesses and consumers ahead of the midterm elections in November, where Republicans are seeking to maintain control of Congress.
US officials have been in discussions with their counterparts from the Group of Seven (G7) major economies regarding potential coordinated actions. One measure under consideration is a possible joint release of crude oil from strategic reserves. Other options being explored include restricting US exports, intervening in oil futures markets, waiving certain federal taxes, and easing requirements under the Jones Act, which mandates that domestic fuel shipments utilize US-flagged vessels. These sources spoke on the condition of anonymity.
Furthermore, administration officials are reportedly exerting diplomatic pressure on Gulf allies to assist in restoring oil production and shipping activities. A third source indicated that these diplomatic efforts are aimed at stabilising the global oil market. The White House has added a press conference to President Trump’s schedule for Monday afternoon (Tuesday AEDT morning), but has not specified whether any announcements regarding oil prices will be made during the event.
Analysts suggest that US policy interventions may have limited influence on global oil markets if the conflict continues to disrupt Middle East oil exports via the Strait of Hormuz. This area is responsible for a substantial portion, about one-fifth, of the global oil supply. The situation remains fluid, and the impact of any policy changes will depend significantly on developments in the Middle East.
