Trump's Limited Arsenal: Inside the Policy Options to Combat Surging Oil Prices Amid U.S.-Iran Conflict

As oil prices have climbed approximately 20% since the United States entered into conflict with Iran on February 28, President Trump is exploring a range of policy mechanisms to curb escalating fuel costs — though energy experts caution that his available tools carry significant limitations. The most impactful resolution, analysts agree, would be either ending hostilities with Iran or securing the Strait of Hormuz, a critical maritime corridor responsible for roughly 20% of global oil supply. Without addressing that chokepoint, domestic relief measures are unlikely to restore pre-war price levels. Among the options under consideration, tapping the Strategic Petroleum Reserve stands out as the most immediate lever. G7 finance ministers have already convened to explore a coordinated release through the International Energy Agency, potentially yielding up to 1.2 million barrels per day — a figure analysts at JPMorgan note would still fall far short of offsetting potential losses should Iranian naval activity disrupt Hormuz shipments, estimated at up to 12 million barrels daily. Additional measures include restricting domestic crude oil exports, which carries long-term risks of undermining production incentives; temporarily suspending federal fuel taxes of 18.4 cents per gallon, a move requiring Congressional approval; allowing individual states to cut their own fuel levies; waiving the Jones Act to improve domestic oil distribution efficiency; and relaxing summer restrictions on E15 ethanol-blended gasoline to modestly expand supply. In the near term, presidential rhetoric has already demonstrated some market influence — oil prices fell sharply following Trump's remarks suggesting the conflict was largely concluded. However, petroleum analyst Patrick De Haan of GasBuddy emphasized that without tangible progress on the Strait of Hormuz, no combination of domestic policy tools will deliver meaningful, sustained price relief to American consumers.