Markets seesaw over oil price fears as Trump says war to be ‘ended soon’ - The Washington Post
Key Takeaways
- Brent crude spiked to nearly $120 per barrel before retreating.
- Oil prices reached highs not seen since the aftermath of Russia's 2022 invasion.
- President Donald Trump sent mixed signals about his Iran plans, unsettling markets.
Oil supply and costs
Officials and analysts stressed limits to available policy tools.
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The U.S. eased some sanctions on Russia by providing a 30-day waiver allowing India to buy Russian oil.
Treasury Secretary Scott Bessent said further sanctions relief is possible, but tapping the Strategic Petroleum Reserve offers only temporary relief.
The reserve holds about 415 million barrels, “enough to cover less than four days of global oil demand.”
Federal officials are reluctant to draw down more than a third.
Angie Gildea, global head of oil and gas at KPMG, said, “There is simply no substitute for restoring access through the Strait of Hormuz.”
Diesel hit $4.78 a gallon Tuesday, up nearly 90 cents from a week earlier and already over $6 in California.
That prompted UPS and container shipping companies to add fuel surcharges and raised the prospect of higher consumer and farm prices if costs for shipping and diesel-fed equipment keep climbing.