March 9 - U.S. President Donald Trump is set to review as early as Monday a range of measures aimed at tamping down oil prices that have surged past $100 a barrel amid military action involving Iran, according to people familiar with the discussions.
The White House is concerned the spike in energy costs will weigh on American businesses and consumers ahead of the November midterm elections, where Republicans led by the president hope to preserve control of Congress. Officials have been exploring actions they believe could reduce pressure on crude and retail fuel prices.
Among the options that U.S. officials have discussed with counterparts from the Group of Seven major economies is a coordinated release of crude from strategic petroleum reserves. Sources said other possibilities being considered include restricting U.S. crude exports, direct intervention in oil futures markets, waiving selected federal taxes and temporarily lifting parts of the Jones Act that require fuel moved domestically to travel on U.S.-flagged vessels.
Those familiar with the internal deliberations, who spoke on condition of anonymity, said the list is not exhaustive and remains under review by senior White House staff. The effort to compile proposals included a request last week from the White House for federal agencies to develop options to ease crude and gasoline price pressure.
A White House spokesperson, Taylor Rogers, said the administration is coordinating with relevant agencies and that keeping energy markets stable is a top priority for the president. Rogers added that President Trump and his energy team had prepared a robust plan to support market stability prior to the operations the administration has called Operation Epic Fury, and that officials will continue to evaluate all credible alternatives.
Domestic deliberations reportedly involve senior White House officials, among them Chief of Staff Susie Wiles and top adviser Stephen Miller. But even with a suite of policy tools on the table, analysts and industry participants cautioned those options may have limited effect if the conflict continues to choke flows of Middle Eastern oil.
Most critically, a sizable portion of global crude - roughly one fifth - moves through the Strait of Hormuz, the narrow channel between Iran and Oman. Sources and analysts say that until tanker traffic is restored, U.S. actions are unlikely to fully offset the supply shock that has pushed global prices sharply higher.
Global benchmark crude briefly touched $119 a barrel amid the unrest, with gasoline and other fuel prices rising since the strikes began on February 28. The White House has so far pursued steps intended to support shipping in the region, including plans to provide naval escorts and backstop insurance for tankers transiting the strait, but those efforts have not yet restored traffic to prior levels.
One source involved in the discussions described the available options as ranging from marginal or symbolic to potentially unwise if implemented without clear, effective outcomes. The source emphasized the difficulty in finding short-term levers that will move global markets while a key export route remains at risk.
The broader economic concern for the administration is the transmission of higher oil and gasoline prices into transportation and consumer costs, with potential ripple effects across the economy. A sustained run-up in fuel prices could complicate the administration’s messaging on household and business affordability ahead of the November elections.
Officials continue to weigh whether a joint release of reserves with other major economies would materially lower prices, and whether domestic actions such as export restrictions or tax waivers might provide quicker relief for U.S. consumers. At this stage, however, U.S. policy makers acknowledge the limitations of such measures absent a reliable reopening of tanker routes through the Strait of Hormuz.