Trump reviews fuel price measures as Iran conflict drives oil toward $120

The surge in global crude oil prices triggered by the escalating conflict involving Iran is prompting the White House to consider emergency steps to prevent a spike in fuel costs across the United States. With benchmark oil prices climbing above $100 a barrel, President Donald Trump is expected to review a set of policy responses as early as Tuesday aimed at easing pressure on consumers and businesses.

The deliberations come at a politically sensitive moment. Rising fuel prices risk feeding into broader inflation concerns ahead of the November midterm elections, when Republicans are seeking to retain their majority in Congress. Officials say the administration is examining ways to stabilise energy markets as the geopolitical crisis intensifies.

Strategic reserves and market intervention under review

Among the options under consideration is a coordinated release of crude from strategic petroleum reserves alongside other members of the Group of Seven (G7) nations. Such a move would aim to inject additional supply into global markets in order to moderate price volatility.

Officials familiar with the discussions said the administration is also evaluating a range of additional measures. These include curbing US crude exports, intervening in oil futures markets, temporarily suspending certain federal fuel taxes and easing restrictions under the Jones Act, which requires fuel shipments between US ports to be carried on American-flagged vessels.

Last week, the White House directed federal agencies to compile policy proposals designed to relieve pressure on crude and gasoline prices. The discussions involve senior administration figures, including White House Chief of Staff Susie Wiles and adviser Stephen Miller.

Iran conflict pushes oil to multi-year highs

Energy markets have been rattled since the United States and Israel launched military strikes on Iranian targets on February 28 in an operation described by the administration as Operation Epic Fury.

The escalation has driven global oil prices to levels last seen in mid-2022, with crude briefly approaching $119 a barrel. The rise in crude benchmarks has already translated into higher gasoline and fuel costs, raising concerns about its economic impact in the United States and beyond.

White House spokesperson Taylor Rogers said the administration is actively coordinating with government agencies to respond to the situation.

“The White House is in constant coordination with the relevant agencies on this important issue, as it is a top priority to the president. President Trump and his entire energy team have had a strong game plan to keep the energy markets stable well before Operation Epic Fury began, and they will continue to review all credible options,” Rogers said.

(With inputs from Reuters)