Source : INDIA TODAY NEWS
With global oil prices surging past $100 a barrel amid the escalating conflict involving Iran, United States President Donald Trump is expected to review a set of measures as early as Tuesday aimed at bringing fuel prices under control.
The deliberations come as the White House faces mounting concern that rising energy costs could hit businesses and consumers across the United States ahead of the November midterm elections, when Republicans are hoping to retain control of Congress.
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STRATEGIC RESERVES AMONG OPTIONS UNDER DISCUSSION
Officials in Washington have been exploring several measures to cool oil markets, including a coordinated release of crude oil from strategic reserves with members of the Group of Seven major economies.
Sources familiar with the discussions said other options being examined include restricting US oil exports, intervening in oil futures markets, waiving certain federal taxes on fuel and temporarily lifting requirements under the Jones Act, which requires domestic fuel shipments to move only on US-flagged vessels, as reported by Reuters.
Last week, the White House asked federal agencies to assemble proposals that could help ease pressure on crude and gasoline prices. The discussions involve senior officials, including White House Chief of Staff Susie Wiles and adviser Stephen Miller.
OIL PRICES SURGE AMID IRAN CONFLICT
Global crude prices have climbed to levels not seen since mid-2022, briefly touching $119 a barrel. The spike has pushed up gasoline and fuel costs since the United States and Israel began military strikes on Iran on February 28 under an operation described by the administration as Operation Epic Fury.
White House spokesperson Taylor Rogers said the administration was closely coordinating with relevant agencies on the issue.
“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.
STRAIT OF HORMUZ DISRUPTION ADDS PRESSURE
Analysts say the main driver behind the price surge is the threat to oil shipments through the Strait of Hormuz, the narrow waterway between Iran and Oman that carries roughly one-fifth of the world’s oil supply.
Industry experts believe the United States has limited tools to quickly cool prices unless tanker traffic through the strait returns to normal.
“The problem is options range from marginal through symbolic to deeply unwise,” one source engaged with the White House discussions said.
The administration has also explored providing naval escorts and insurance backing for tankers passing through the Strait of Hormuz. However, the measure has so far failed to significantly increase shipping traffic through the crucial global energy corridor.
– Ends
With inputs from Reuters
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SOURCE :- TIMES OF INDIA
