Oil prices surge as Trump team readies to "mitigate" costs

Ben Geman

Data: Financial Modeling Prep; Chart: Axios Visuals

Crude oil prices are at their highest levels since the military campaign against Iran after climbing again overnight and Tuesday morning.

Why it matters: The latest rise — and how it ripples through consumer prices — raises the stakes of Trump officials' upcoming plans to address costs.

The latest: The Energy and Treasury Departments will begin rolling out new efforts Tuesday to address energy price increases from the Iran conflict, Secretary of State Marco Rubio said.

"We anticipated this could be an issue," he told reporters in the Capitol on Monday. He didn't offer details but said it's designed to "mitigate against" the price impact.

State of play: The U.S. doesn't have immediate plans to release oil from the Strategic Petroleum Reserve, Bloomberg reports.

But ING analysts said in a note: "The longer the Middle East disruptions last, the more likely we are to see coordinated emergency releases from several countries."

The intrigue: The White House provided no details on the plans that Rubio said will start emerging Tuesday.

Oil analyst Rory Johnston posted on X that Trump's options would include an SPR release, gas tax holiday, and easing restrictions on Russia.

By the numbers: The global benchmark Brent crude is trading at roughly $83 Tuesday morning, up over $10 per barrel since last week.

U.S. regular gasoline prices are averaging $3.11 per gallon Tuesday after beginning the week just under $3, per AAA.

Zoom out: Tankers avoiding the Strait of Hormuz are pushing up prices, and so are fresh signs of the conflict widening to energy-related infrastructure.

"On Tuesday, a fuel tank at Oman's Duqm commercial port was hit and a fire broke out at the United Arab Emirates' Fujairah, one of the key regional oil hubs," Reuters reports in a wider, helpful look at what's been damaged.

What we're watching: President Trump is scheduled to meet Tuesday afternoon with Energy Secretary Chris Wright and Treasury Secretary Scott Bessent.

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