The U.S. is not expected to tap into its government stockpile of oil yet — but sticker shock at the pump may put that option on the table if crude prices climb further after its attack on Iran.
The U.S. benchmark oil price closed Monday up 6 percent as Middle East turmoil showed no signs of slowing. Shipping traffic through the Strait of Hormuz, through which more than one-fifth of the world’s waterborne crude passes, has largely stalled amid Iranian attacks on energy infrastructure in the region and warnings that it would target ships traveling through the narrow passage.
Analysts expect oil prices to keep rising the longer the disruption continues, possibly heading for the triple digits. A rally of that extent would quickly be felt by Americans at the gas pump. The Strategic Petroleum Reserve, established after the 1973 Arab oil embargo, was designed to address supply disruptions and temper price spikes in such a crisis.
The Trump administration will unveil a plan on Tuesday to combat the rise in oil prices triggered by the strikes, Secretary of State Marco Rubio said Monday.
