Trump administration considers emergency measures to stabilize oil prices amid war with Iran
Kyiv • UNN
Trump's advisers have developed a plan to counter rising energy prices due to the war with Iran. It includes state insurance guarantees for tankers and naval escort.
Advisers to US President Donald Trump have developed a comprehensive plan to counter the sharp rise in energy prices that has emerged against the backdrop of large-scale hostilities in the Middle East. This was reported by Bloomberg, writes UNN.
Details
White House energy council head Doug Burgum stated that the government is ready to use both immediate market intervention mechanisms and long-term strategic tools. Key initiatives include providing state insurance guarantees for tankers and organizing naval escorts in the Strait of Hormuz to ensure uninterrupted supply of raw materials to allies. Despite the fact that the US remains the world's largest oil producer, the administration does not rule out unprecedented intervention by the Treasury Department in futures trading to curb speculation.
Strategic insurance and military escort of cargo
The US International Development Finance Corporation (DFC), together with the Treasury Department, is finalizing a program to insure ships against war risks at preferential prices. This step is intended to restore confidence among private carriers, who began to massively avoid transit through the Persian Gulf after a series of attacks on tankers.
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In parallel, the US Navy is preparing to deploy convoys to escort commercial vessels through critical waterways, demonstrating Washington's readiness to use military power to protect global energy routes.
Everything is being considered. We, as the federal government, have the ability to intervene and establish, I would say, some normalcy.
Use of reserves and market interventions
In addition to logistical measures, the White House is discussing the possibility of a large-scale release of oil from the Strategic Petroleum Reserve (SPR) in coordination with IEA partners.
The US can take some risk to ensure proper supply to our allies around the world, and we are the only ones who can do that because we have the financial and naval power to make it happen.