Starting Tuesday, measures will be implemented in phases, with the U.S. stating that there are contingency plans to "mitigate oil price increases"

U.S. Secretary of State Pompeo said that the Trump administration will announce a special plan on Tuesday to address rising oil prices to ease the turmoil in the energy market caused by U.S. military strikes on Iran.

On Monday, March 2, before heading to a briefing on Iran at the U.S. Congress, Secretary of State Pompeo claimed to the media that the Trump administration has a plan to stabilize the oil market.

He stated that on Tuesday, U.S. Secretary of the Treasury Mnuchin and Energy Secretary Chris Wirth will officially announce the plan and will roll out related measures in phases. Pompeo pointed out that rising oil prices are a risk factor the government had anticipated. He said:

We know this will be a variable, and last night and this morning we discussed this plan again. Starting tomorrow, you will see us gradually implement these phased measures to try to mitigate this impact.

On Monday, U.S. crude oil futures prices surged more than 6% in a single day. Reports indicated that a senior officer of the Iranian Revolutionary Guard claimed to have closed the Strait of Hormuz and warned of attacking ships attempting to pass, sharply increasing market fears of supply disruptions.

(Original oil futures opened sharply higher on Monday)

Urgent Situation in the Strait of Hormuz, Global Oil Transportation Faces Severe Tests

The news that Iran’s Revolutionary Guard claimed to have closed the strait has sharply escalated this tense situation. When asked about response measures, Pompeo responded strongly, saying “We will destroy their navy.”

The Strait of Hormuz is a critical choke point for global energy transportation, with over 20% of the world’s waterborne crude oil and natural gas shipped through this channel from the Persian Gulf to international markets.

Iran’s harassment of ships passing through this strait has caused significant disruptions to global oil flows, with many oil tankers either stranded outside the strait waiting or forced to reroute along longer routes to reach their destinations.

For the energy market, whether the Strait of Hormuz can remain open is a key variable determining short-term oil price trends. The strength and focus of the plan announced by the government on Tuesday will be closely scrutinized by the market.

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