U.S. President Donald Trump is set to review a suite of possible responses as early as today to rising crude oil prices that have climbed back above $100 per barrel, the result of the Iran war, a Reuters report said, citing two people familiar with the situation.
The review comes as the White House evaluates the economic implications of higher fuel costs for American businesses and households ahead of the November midterm elections, where the Republican Party seeks to retain control of Congress, the sources told Reuters.
According to the report, U.S. officials have been in contact with counterparts from the Group of Seven major economies to discuss the potential for a joint release of crude from strategic petroleum reserves. That option is one of several being considered as part of the administration's response.
Other measures that sources said are under consideration include limiting U.S. crude exports, intervening directly in oil futures markets, waiving certain federal taxes and easing the Jones Act requirement that domestic fuel transported between U.S. ports be carried on U.S.-flagged vessels. The people who described these options spoke on condition of anonymity.
Global benchmark crude has reached price levels not seen since mid-2022, briefly touching $119 per barrel, the Reuters report noted. The elevated prices have prompted concern in Washington about the near-term impact on consumer and business costs.
Officials' talks with G7 counterparts over a possible coordinated release from strategic reserves reflect a focus on an international, multilateral response in addition to unilateral domestic actions. Sources did not provide further detail on timing, scale or which combinations of measures might be chosen.
Context and stakes
Officials say the administration is weighing both market-facing and regulatory tools to blunt price pressure. The range of options under review spans internationally coordinated reserve releases to domestic regulatory and fiscal adjustments. The choice of measures and their implementation timeline remain unclear based on the information in the report.
What is known
- President Trump is expected to examine options as early as today to address rising oil prices, according to Reuters, which cited two people familiar with the matter.
- U.S. discussions with G7 counterparts have included the possibility of a joint release from strategic petroleum reserves.
- Other domestic options under consideration include restricting exports, intervening in futures markets, waiving certain federal taxes and lifting Jones Act fuel-transport requirements, according to anonymous sources.
- Global crude briefly hit $119 per barrel and has reached levels not seen since mid-2022.
Given the limited set of details provided by the anonymous sources in the Reuters report, there is no public confirmation of any specific measure being selected or of a definitive timetable.