Officials within the Trump administration have, for the moment, ruled out ordering the Treasury Department to intervene directly in oil futures markets, according to a report that cited a person familiar with internal discussions. The option was discussed internally, but participants concluded that the Treasury’s capacity to materially influence oil prices through futures trades is limited.
Global crude benchmarks had climbed since the outbreak of hostilities with Iran on Saturday, with the expanding conflict disrupting supplies from the Middle East and putting upward pressure on prices. Those gains briefly reversed on Thursday, marking the first decline in six days, after reports surfaced that U.S. authorities might step into the futures market.
Officials also expressed reluctance to immediately tap the Strategic Petroleum Reserve - partly because the reserve is now approximately 60% full, the report said. That level appears to have been a factor in the decision to avoid near-term use of the reserve as a price-mitigation tool.
The White House and the Treasury did not provide immediate comment outside regular business hours. A separate note in the reporting said that a senior White House official had indicated on Thursday that the Treasury would soon announce steps intended to address rising energy prices following the Iran-related conflict, and that those measures could include potential action tied to the oil futures market. The White House official spoke on condition of anonymity and declined to outline specifics, saying they did not want to pre-empt any forthcoming Treasury announcement.
The reporting agency said it could not immediately verify the developments. The available information reflects officials' assessments that direct Treasury trading would have limited market impact, and that the current status of the Strategic Petroleum Reserve weighed against an immediate release.