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.
China’s ruling Communist Party is stepping up oversight of technology firms, internet platforms and digital finance in a sweeping drive to ta...
A wave of bomb threats targeting passenger flights has disrupted air travel across Europe, forcing diversions, airport closures and fighter jet esc...
U.S. President Donald Trump says Washington will end its annual financial and military aid to Israel by the end of 2026, under an agreement he clai...
Iranian parliament speaker Mohammad Bagher Ghalibaf says the U.S. must act to prevent war after Tehran sent a “strong and rational response” to Washington. Meanwhile, U.S. forces have reportedly carried out limited strikes against Iranian targets, including Qeshm Island,
Hundreds of millions of U.S. citizens head to the polls on 3 November to elect the House of Representatives and Senate. How they vote could influence the direction of Donald Trump’s remaining 26 months in office and the outcomes of the Ukraine and Iran conflicts.
A six-day humanitarian ceasefire in the Russian-held Ukrainian town of Oleshky ended on Sunday, 1 November, after facilitating aid deliveries and civilian evacuations.
Kyrgyzstan has emerged as Central Asia’s fastest-growing economy, fuelled by a construction boom, public investment and trade linked to Russia. But with Western sanctions tightening, can the country sustain its rapid growth?
Russia airstrikes on a school used as a humanitarian aid distribution point in southeastern Ukraine's Zaporizhzhia region killed at least 26 people, including rescue workers and police officers, Ukrainian officials said. Another 27 people were reported missing.
A new book examining Azerbaijan’s military strategy, technology and operations during the Garabagh wars has been unveiled in Baku, offering insights into the country’s victories and lessons for modern warfare.
Iranian parliament speaker Mohammad Bagher Ghalibaf says the U.S. must act to prevent war after Tehran sent a “strong and rational response” to Washington. Meanwhile, U.S. forces have reportedly carried out limited strikes against Iranian targets, including Qeshm Island,
Tajikistan has banned electronic cigarettes and nicotine delivery systems, becoming the latest Central Asian country to outlaw their production, import and sale as part of a wider push to protect public health.
Kyrgyzstan has emerged as Central Asia’s fastest-growing economy, fuelled by a construction boom, public investment and trade linked to Russia. But with Western sanctions tightening, can the country sustain its rapid growth?
Armenian Prime Minister Nikol Pashinyan said the government plans to publish a draft of the country's new constitution in November, with public consultations to follow, as constitutional reforms remain a key issue in efforts to secure a final peace agreement with Azerbaijan.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment