Trump has no remaining levers to pull as oil hovers near the $100 ‘psychological’ threshold - Fortune

What the report says

Fortune reported that oil markets are again approaching the politically and economically sensitive $100-a-barrel level as conflict involving Iran broadens and attacks in the Red Sea threaten shipping. The article, published July 25, said prices moved above $100 earlier in the week before easing, after Houthi rebels in Yemen fired on two Saudi oil tankers near the Bab el-Mandeb strait. Fortune framed the moment as a difficult test for President Donald Trump, arguing that many short-term tools to relieve fuel prices have already been used.

Energy analyst Dan Pickering of Pickering Energy Partners told Fortune that the administration faces limited options if both the Strait of Hormuz and Red Sea routes are effectively constrained. The report said possible measures such as emergency reserve releases, a gas-tax holiday, higher domestic output or waivers to shipping rules are either depleted, politically difficult or already in place. Pickering said the market could worsen quickly in August if shipping disruptions deepen, with oil potentially revisiting the late-April level of about $124 a barrel.

Fortune also cited Andy Laperriere of Piper Sandler, who argued that Iran may believe it has leverage over the Strait of Hormuz and may be unwilling to reopen it without concessions. The article said the U.S. Strategic Petroleum Reserve has fallen to 311 million barrels, down from a 2009 peak above 726 million and from 415 million in late March, limiting confidence in further drawdowns.

The significance is that triple-digit oil can feed inflation concerns, unsettle financial markets and raise gasoline costs for consumers. Fortune said average U.S. regular gasoline had climbed above $4.10 a gallon, increasing pressure on the administration before the midterm elections.