As the US administration contemplates various policy options to handle increased oil and gasoline prices during the Iran dispute, Michael Wan, Senior Currency Analyst at MUFG, observes that Brent Oil has softened to about US$85/bbl. Global and Asian markets are wary of weekend gap risks due to potential actions such as regulatory waivers, strategic reserve releases, and even futures market intervention.
The US policy discussion cools Prices in Brent
According to US Secretary Doug Burgum, "Brent oil prices eased somewhat to US$85/bbl, as rumors emerged that the Trump administration is examining alternatives for tackling the surge in oil and gasoline prices during the war in Iran."
"The potential options being discussed include relaxing fuel-blending restrictions, direct intervention in oil futures markets, and possibly releasing crude from the nation's emergency oil stockpile in concert with other nations to maximize effect."
"This comes on top of previously stated measures to give insurance guarantees and military escorts to ensure safe passage for oil tankers and other vessels through the Strait of Hormuz."
"In an intriguing move as well, the US Treasury recently approved waivers for India's purchase of Russian oil for 30 days till April 4, 2026, in a move that possibly recognizes that one cannot have his cake and eat it too in fights on several fronts."
"Overall, it is unknown how much impact this could have from a worldwide viewpoint, particularly for our region here in Asia."
The US policy discussion cools Prices in Brent
According to US Secretary Doug Burgum, "Brent oil prices eased somewhat to US$85/bbl, as rumors emerged that the Trump administration is examining alternatives for tackling the surge in oil and gasoline prices during the war in Iran."
"The potential options being discussed include relaxing fuel-blending restrictions, direct intervention in oil futures markets, and possibly releasing crude from the nation's emergency oil stockpile in concert with other nations to maximize effect."
"This comes on top of previously stated measures to give insurance guarantees and military escorts to ensure safe passage for oil tankers and other vessels through the Strait of Hormuz."
"In an intriguing move as well, the US Treasury recently approved waivers for India's purchase of Russian oil for 30 days till April 4, 2026, in a move that possibly recognizes that one cannot have his cake and eat it too in fights on several fronts."
"Overall, it is unknown how much impact this could have from a worldwide viewpoint, particularly for our region here in Asia."
