- US President Trump may review export curbs and tax waivers to lower oil prices by Monday
- The move aims to protect US businesses and voters ahead of November midterm elections
- Oil prices eased after surging past $120 a barrel amid Iran conflict escalation
US President Donald Trump is expected to review export curbs and tax waivers to curb oil prices as early as Monday, reported news agency Reuters. According to the report, the effort reflects White House worries that the surge in oil prices will hurt US businesses and consumers ahead of the November midterm elections when Trump's fellow Republicans are hoping to retain control of Congress.
In addition he is looking at easing Jones Act Requirements over oil price, the report on Monday added. This comes as oil prices eased from their session highs on Monday after a historic surge earlier in the day, as reports emerged that G7 nations may discuss releasing crude from emergency reserves to stabilise markets.
US oil prices had crossed $120 a barrel as the Iran war intensified, however, the prices retreated.
The rally comes after crude had settled significantly lower last week. Brent closed Friday at $92.69 per barrel and US crude ended the session at $90.90 before geopolitical tensions escalated.
Reserve Discussions
Prices moderated after the Financial Times reported that G7 finance ministers are expected to discuss a coordinated release of oil from emergency reserves managed by the International Energy Agency. Three G7 countries, including the United States, have expressed support for the proposal so far, according to the report.
Governments have previously used coordinated reserve releases during supply shocks to cool markets and prevent shortages, the report added.
War Escalation
Oil markets reacted sharply as the conflict involving Iran, the United States and Israel entered its 10th day, raising fears that fighting could disrupt energy infrastructure and shipping routes in West Asia.
US and Israeli forces have carried out strikes on Iranian military and fuel facilities, including depots in Tehran. Iran has responded with attacks targeting Israeli positions and United States-linked military assets across the Gulf. Iranian officials have warned that prolonged hostilities could affect the country's oil sector.
Iran's parliamentary speaker Mohammad Bagher Ghalibaf said continued fighting could disrupt Iran's ability to produce and sell oil. “If the war continues like this, there'll be neither a way to sell oil nor the capacity to produce it,” he said.
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