The U.S. will take action to mitigate rising energy prices due to a spike in the price of oil caused by the Iran conflict, Secretary of State Rubio said on Monday.
Speaking to reporters at Capitol Hill, Rubio said Treasury Secretary Scott Bessent and Energy Secretary Chris Wright would announce the plans on Tuesday.
"Starting tomorrow, you will see us rolling out those phases to try to mitigate against that ... We anticipated this could be an issue," Rubio said.
President Donald Trump is scheduled to meet with Bessent and Wright at 2 p.m. (1900 GMT) on Tuesday, according to his itinerary released by the White House.
Oil and gas prices surged on Monday following Israeli and U.S. strikes on Iran and retaliation by Tehran that forced shutdowns of oil and gas facilities across the region and disrupted shipping in the crucial Strait of Hormuz.
The Energy and Treasury Departments did not immediately respond to a request for comment.
Brent crude futures were at $78.83 a barrel, up $1.10, or 1.4%, by 0107 GMT. On Monday, the contract surged to as high as $82.37, its highest since January 2025, though it pared those gains to settle 6.7% higher.
U.S. West Texas Intermediate crude jumped 74 cents, or 1%, to $71.97 a barrel. In the previous session, the contract initially climbed to its highest since June 2025 before sliding back to still settle up 6.3%.
"With no quick de-escalation in sight, the Strait of Hormuz effectively closed and Iran showing a willingness to target energy infrastructure in the region, upside risks remain and they grow the longer the conflict drags on," Tony Sycamore, IG market analyst, said in a note.
The U.S. and Israeli air war against Iran widened on Monday with Israel attacking Lebanon and Iran responding with strikes against energy infrastructure in Gulf countries and against tankers in the Strait of Hormuz.
On a typical day, ships carrying crude oil equal to about one-fifth of global demand sail through the Strait of Hormuz along with tankers hauling diesel, gasoline and other fuels to major Asian markets including China and India. The waterway is also the conduit for about 20% of the world’s liquefied natural gas.
Tankers and container ships are avoiding the waterway as insurers have cancelled their coverage for vessels.
The concerns about transiting the waterway are increasing as Iranian media reported on Monday an Iranian Revolutionary Guards senior official saying the Strait of Hormuz is closed and Iran will fire on any ship trying to pass.
Earlier on Monday, the Revolutionary Guards said a fuel tanker, identified as the Honduran-flagged Athe Nova, was burning in the Strait after being hit by two drones, Iranian news agencies reported.
Analysts expect oil prices to remain elevated over the coming days while markets focus on the impact of escalating Middle East conflict.
Bernstein on Monday raised its 2026 Brent oil price assumption from $65 to $80 a barrel, but sees prices reaching $120-$150 in an extreme case of prolonged conflict.
Refined product futures are also gaining as the Middle East is a key supplier of fuels and their processing facilities are at risk. On Monday, Saudi Arabia shut its biggest domestic oil refinery after a drone strike.
U.S. ultra-low-sulfur diesel futures were up 3.1% at $2.991 after reaching a two-year high on Monday, while gasoline futures were up 1.1% after climbing 3.7% in the previous session.
European gasoil futures gained 2.7% to $909.50 a metric ton, after climbing 18% on Monday.
U.S. Secretary of State Marco Rubio is expected to travel to the Vatican and Italy this week for a series of meetings, according to It...
Israel has approved a major defence deal to purchase new squadrons of advanced fighter jets from U.S. manufacturers Lockheed Martin an...
Ukraine has launched a new wave of drone strikes on Sunday (3 May) across Russia, hitting key infrastructure and causing casualties in several...
China has moved to block U.S. sanctions on five of its oil refineries, in a fresh escalation of tensions over trade and energy policy....
Nobel Peace Prize laureate Narges Mohammadi has been taken to hospital in Iran after what her family described as a “catastrophi...
U.S. Secretary of State Marco Rubio is expected to travel to the Vatican and Italy this week for a series of meetings, according to Italian media reports, in a visit that comes amid strained relations between Washington and parts of Europe and heightened tensions involving Pope Leo XIV.
Israel has approved a major defence deal to purchase new squadrons of advanced fighter jets from U.S. manufacturers Lockheed Martin and Boeing, the country’s defence ministry said on Sunday (3 May).
Ukraine has launched a new wave of drone strikes on Sunday (3 May) across Russia, hitting key infrastructure and causing casualties in several regions, officials on both sides said.
China has moved to block U.S. sanctions on five of its oil refineries, in a fresh escalation of tensions over trade and energy policy.
President Trump has issued a warning to the international community, claiming a nuclear-armed Iran would strike Israel "very quickly" before targeting Europe and the United States.
Ukraine is monitoring “unusual activity” along its border with Belarus, President Volodymyr Zelenskyy said in a video statement released on Saturday (2 May). He warned that Kyiv is ready to respond if necessary amid continued regional tensions linked to Russia’s war.
Hundreds of young people in South Korea have gathered in Seoul to take part in a city-backed “power nap contest”, aimed at drawing attention to the country’s chronic sleep deprivation.
Türkiye’s Vice President Cevdet Yılmaz is set to visit Armenia in early May to take part in the 8th European Political Community Summit, in what will be the highest-level Turkish visit to the country to date. Meanwhile, German Chancellor Friedrich Merz is reportedly expected to miss the forum.
U.S. President Donald Trump has said he will “soon be reviewing” a new 14-point proposal sent by Iran, casting doubt on the chances of a deal after Tehran called for security guarantees, an end to naval blockades and a halt to the war across the region, including in Lebanon.
Israel has approved a major defence deal to purchase new squadrons of advanced fighter jets from U.S. manufacturers Lockheed Martin and Boeing, the country’s defence ministry said on Sunday (3 May).
Nobel Peace Prize laureate Narges Mohammadi has been taken to hospital in Iran after what her family described as a “catastrophic deterioration” in her health, including a severe cardiac crisis.
President Donald Trump has said the United States could restart strikes on Iran “if they misbehave”, as he waits to review the full details of a new proposal from Tehran.
Tourism across Central Asia is expanding rapidly, with millions of visitors arriving each year as the region becomes an increasingly competitive global travel destination, though growth rates vary significantly between countries.
Baku will host the 13th World Urban Forum (WUF13) from 17 to 22 May, bringing together around 25,000 participants from 176 countries to address the global housing crisis and sustainable urban development.
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