Trump To Evaluate Options To Curb Energy Prices As Iran War Pushes Crude Beyond $100: Report

• President Trump’s options could include a joint release of strategic petroleum reserves from the Group of Seven economies.
• Other options on the table include waiving some federal taxes, restricting crude oil exports from the U.S., and intervening in the oil futures markets.
• According to a CNBC report, energy ministers from the Group of Seven economies could meet on Tuesday to discuss a release of reserves.

President Donald Trump will reportedly consider multiple options to curb energy prices as the intensifying Iran war pushed crude oil to over $100 on Monday.

According to a Reuters report citing people familiar with the matter, President Trump could review these options on Monday.

These options could include a joint release of strategic petroleum reserves from the Group of Seven economies. Other options on the table include the waiving of some federal taxes, restricting crude oil exports from the U.S., intervening in the oil futures markets, and lifting requirements under a United States law that mandates domestic fuel should move only on U.S.-flagged ships, the report stated.

According to a CNBC report, energy ministers from the Group of Seven economies could meet on Tuesday to discuss a release of reserves.

Crude Oil On The Boil

This comes at a time when crude oil prices have crossed the $100-per-barrel level. The U.S. West Texas Intermediate (WTI) futures expiring in April soared to a new 52-week high of $119.43 a barrel before cooling down slightly to hover at nearly $96 at the time of writing.

Brent crude futures expiring in May also rose to a new 52-week high of $119.46 a barrel before paring some of the gains to hover near the $100 mark.

The United States Oil Fund ETF (USO) was up more than 5%, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) was over 6% at the time of writing.

Markets Start Pricing In A Longer Disruption, Say Analysts

Analysts at ING Think stated in a recent note that markets are beginning to price in a longer supply disruption amid the intensifying Iran war.

“The longer this goes on, the more supply we will see shut-in. This is a concern for markets. Even if flows through the Strait of Hormuz start to resume, it will take time for upstream production to ramp up,” the firm stated.

The combination of production shut-ins and no signs of de-escalation in the conflict is forcing the market to increasingly price in the risk of a prolonged supply disruption. Unless oil shipments resume through the Strait of Hormuz, prices are likely to keep rising, ING Think added.

Meanwhile, U.S. equities declined in Monday morning’s trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.52%; the Invesco QQQ Trust ETF (QQQ) fell 0.2%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.95%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘bearish’ territory.

Also See: Dow Tumbles Over 500 Points As Iran War Stokes Fears Of Further Selloff In US Stocks This Year

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