United States: Energy

Domestic

The primary focus was on responding to severe disruptions in global energy markets. Iran's attacks on vessels and threats to close the Strait of Hormuz pushed oil prices above $100 per barrel. In response, the United States released strategic oil reserves and coordinated with the International Energy Agency to stabilize supplies. Concurrently, the U.S. engaged Russia in discussions about cooperation to further stabilize energy markets. Domestically, President Donald Trump met with major technology companies to secure pledges that they would pay for power generation, an effort aimed at shielding consumers from higher energy bills.

International

U.S. military actions and sanctions policy were central to international energy dynamics. The United States and Israel launched strikes against Iran, including on Kharg Island, its primary oil export terminal. These actions, alongside Iranian attacks on a U.S. oil tanker in the Gulf, heightened fears over the security of shipments through the Strait of Hormuz. Trump pledged the U.S. Navy could escort ships and provide insurance for tankers. In a significant policy shift, the U.S. Treasury issued a 30-day sanctions waiver allowing transactions for some sanctioned Russian crude oil, freeing an estimated 19 million barrels stranded at sea. This waiver was extended to India for purchases of Russian oil. The move drew criticism from Ukrainian President Volodymyr Zelenskyy and European allies. OPEC+ agreed to a modest output increase despite the disruptions.