Washington targets rising energy prices

The White House has asked federal agencies to prepare new measures to mitigate rising energy prices caused by the conflict with Iran, according to Reuters sources familiar with the situation.

The Departments of Energy, Transportation and Treasury, together with the Environmental Protection Agency (EPA), have been instructed to submit additional proposals that President Donald Trump could adopt without congressional approval.

The move suggests the White House is preparing for the possibility that more drastic measures may be needed if oil and gas prices continue to rise.

The conflict in the Middle East is already having a significant impact on global markets. Oil prices have exceeded $90 per barrel, while US crude has risen by more than 12 per cent, as supplies from the region are constrained by the virtual closure of the Strait of Hormuz, through which about one fifth of the world’s oil production passes.

The administration is considering several options. According to Reuters, discussions include temporarily suspending the federal petrol tax or relaxing environmental regulations for summer fuels. At the same time, the Treasury Department is preparing a guarantee and insurance programme worth up to $20bn for shipping in the Persian Gulf to encourage the transport of oil and liquefied natural gas.

However, analysts note that the government has only limited options for quickly reducing energy prices.

(reuters, est)