Senior officials have asked the departments of Energy, Transportation and Treasury and the Environmental Protection Agency to provide more policy options, with an emphasis on measures that President Donald Trump could implement without congressional approval, one of the sources told Reuters.
The requests indicate that the White House is preparing for the possibility that bolder action may be needed if oil and gas prices continue to climb. Political analysts say higher gasoline prices could hurt Trump and his Republican Party in November’s midterm elections, when control of Congress is at stake.
“Obviously the White House is coordinating with the interagency on this important issue, if we were not, it would be a problem. President Trump and his entire energy team have had a strong game plan to keep oil prices stable well before Operation Epic Fury began, and they will continue to review all credible options and execute on them when appropriate,” White House spokeswoman Taylor Rogers said in a statement.
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U.S. and global crude oil futures climbed above $90 a barrel on Friday, with U.S. prices rising more than 12% as Middle Eastern supply remained constrained by the effective closure of the Strait of Hormuz amid the expanding U.S.-Israeli war against Iran.
Gasoline prices in the U.S. have surged in recent weeks, reaching levels not seen since late 2024. The national average for regular unleaded has climbed above $3.30 per gallon, while diesel has risen to $4.26 per gallon.
The White House has taken a cautious approach to intervening in energy markets, wary that an overly aggressive strategy could backfire. Officials say any broad measures must be carefully calibrated, noting that heavy-handed steps that fail to lower gasoline or crude prices could unsettle markets, erode confidence and trigger political backlash. Analysts, meanwhile, have expressed skepticism about how much the White House can do to rein in prices. Officials have discussed a wide array of options, including a federal gasoline tax holiday and looser environmental regulations around summer gasoline that will allow higher blends of ethanol, Reuters previously reported. The Treasury Department is weighing a plan that involves using the oil futures market, Reuters reported, but there is no immediate plan to announce the move.
Trump ordered on Tuesday that the U.S. International Development Finance Corporation provide insurance against losses stemming from political instability or conflict for maritime trade in the Gulf. The move came after oil and liquefied natural gas tanker transit ground to a halt in the Strait of Hormuz, a chokepoint for about 20% of the world’s daily oil supply.
Markets met the move with some skepticism. Analysts question whether financial guarantees alone can offset the operational and security risks posed by the growing tensions in the region. On Friday, the administration announced it would provide reinsurance for losses up to $20 billion in the Gulf region to bolster confidence for oil and gas shippers during the war with Iran.
(Reporting by Jarrett Renshaw and Nandita Bose; Editing by Colleen Jenkins and Lisa Shumaker)
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