White House officials are in an “all hands on deck” mode as they work to prevent oil prices from spiking as the Iranian conflict continues. Multiple sources indicate the administration is bracing for oil prices to climb above $150 a barrel, with some officials suggesting the market could even reach $200 per barrel.
The White House has been exploring various emergency measures, including deploying additional powers and authorities, to address disruptions in the Strait of Hormuz. Industry officials reported that these efforts aim to alleviate rising energy costs for consumers.
Stephen Moore, a former economic adviser to President Donald Trump, described reaching $150 a barrel as “a nightmare scenario” and emphasized that significant challenges would need to occur for such a price point to be achieved.
White House spokesperson Taylor Rogers stated the administration is actively exploring options to mitigate short-term supply disruptions without indicating any specific price ceiling. “The Administration continues to explore additional options it can take as needed,” Rogers said.
A senior Energy Department official revealed that top staffers have canceled travel plans to remain in Washington, reflecting the high level of political absorption with the crisis. The official noted: “The politicals are pretty absorbed by it all.”
Oil analyst Rory Johnston warned that while the full impact of the Iranian conflict on global oil markets has yet to be fully realized, the disruption to the Strait of Hormuz will likely be felt in the United States within two weeks. Johnston added: “This is going to be really hard on consumers. It’s a massive tax that will sap excess disposable income and hit poor households much harder.”
