Officials in the current administration have for now ruled out using the Treasury Department to buy and sell oil futures as a tool to rein in rising energy prices linked to the escalating Middle East conflict. People familiar with internal discussions told Bloomberg that while the idea has been explored, Treasury involvement is unlikely to have a material impact on market prices.
The calculus rests in part on the recent expansion in oil futures trading volumes. With larger volumes circulating during the conflict, the influence of any single participant - including a government account operating through Treasury - would likely be muted, according to those discussions.
At the same time, the White House remains cautious about drawing down supplies from the Strategic Petroleum Reserve (SPR) immediately. The emergency stockpile was used extensively during the prior administration and is currently reported to be roughly 60% full. Frequent withdrawals over recent years have also introduced operational complications, including additional maintenance requirements at storage facilities, making an immediate SPR release more complex to execute.
Still, officials have not ruled out using the reserve. Sources say that even a relatively modest release from the SPR could serve as a market signal and help relieve upward pressure on prices, should the administration opt to make crude available.
Market reaction during the week has been pronounced. Brent crude recorded its biggest weekly gain since 2022, rising about 17% as geopolitical tensions intensified. Prices eased slightly on Friday after President Trump indicated that "imminent action" could be taken to reduce pressure on the market.
Separately, the Treasury Department issued a temporary waiver allowing Indian refiners to continue purchasing Russian oil until early April. The administration framed that step as a measure to help keep global supplies flowing.
Rising oil prices carry both geopolitical and domestic political implications for the administration. Officials are conscious of the electoral dimension as the president seeks to demonstrate progress in lowering living costs ahead of the November midterm elections.
The administration has also signaled willingness to take additional measures to protect supply routes. Earlier this week the president said the United States would offer insurance guarantees and potentially provide naval escorts to help ensure oil tankers can transit the Strait of Hormuz safely, a strategically important shipping corridor for crude.
On the domestic policy front, Interior Secretary Doug Burgum said Thursday that officials are reviewing a range of possible responses to the jump in oil and gasoline prices that has been linked to the conflict.
While the administration continues to evaluate options, officials appear to favor steps that would have clear market signaling power or that would preserve operational readiness. The decision to hold off on Treasury-based futures trading reflects a judgment about limited market leverage, and hesitation over SPR releases reflects practical constraints at storage sites and the reserve's reduced inventory.