Pressured by lockdown and for gasoline that has reached its highest price in years, Donald Trump has activated a package of emergency measures to stop the economic impact in the midst of a geopolitical storm. This is how things have been since the attack on Iran began.
The region remains tense after a strategic passage through which nearly 20% of the world’s oil circulates.
The consequences are already being felt in our pockets: a gallon of gasoline in the United States has risen to $3.8, one of the highest levels since 2022, according to the American Automobile Association. And with the midterm elections on the horizon, The president, faced with an increasingly complicated situation, has decided to intervene directly.
1. Lifting sanctions on Russian oil: a turn that makes allies uncomfortable
Trump’s first move has been a decision that, according to him, seeks to prevent prices from continuing to skyrocket. “I knew oil prices would go up if I did this,” the president said, “and they have gone up, probably less than I thought.”
The uprising affects Russian crude oil that was already in transit and will have an initial duration of 60 daysa measure confirmed by the Treasury Department.
The initiative provoked immediate criticism within the United States, where senators warned that this flexibility could benefit Russia economically, in the middle of the war against Ukraine.
Europe did not take it well either: some leaders pointed out that the measure has a “very worrying impact” on European security and that weakening sanctions could offer the Kremlin new resources to continue the war.
2. Suspension of the Jones Act: a 100-year rule that is on hold
In parallel, Trump ordered to temporarily suspend the Jones Act, a 1920 legislation that requires maritime transport between US ports to be carried out with national flag ships.
The White House explained that the suspension seeks to reduce logistical costs and relieve pressure on the fuel market as the US military operation in the region continues.
The measure will be in effect for 60 days and aims to reduce the cost of moving oil within the country by allowing the use of foreign vessels on domestic routes, a change that would normally be illegal under the original law.
3. Release of the Strategic Petroleum Reserve: 172 million barrels to the market
The third measure approved by Trump has been to authorize the release of 172 million barrels from the Strategic Petroleum Reserve, one of the largest releases of US crude oil in years. According to the Department of Energy, delivery will be made progressively over about 120 days.
This action adds to the decision of the International Energy Agency, which last week agreed to release 400 million additional barrels by its 32 member countries, the largest coordinated operation in its history.
Hormuz as the epicenter of the crisis
None of this happens in a vacuum or in vain. which keeps the global market in tension and complicates the president’s pressure on his partners in the I’LL TAKE. As the war progresses, this maritime space multiplies its importance. So much so that right now all eyes are pointing directly to what is happening there.
Europe has made it clear that it does not want to expand military operations to the area, despite Trump’s insistence that they assume part of the risk to guarantee the security of the maritime passage. “If there is no response, it will be very bad for the future of NATO”the president even warned, according to the international press.
A president against the clock
The measures adopted reveal something more than an attempt to stabilize the market: they reveal the limited toolbox of the White House in the face of a crisis of geopolitical origin that it does not control. As long as Hormuz remains closed and the confrontation with Iran continues, the pressure on prices and Trump’s popularity will persist.
And with the midterm elections around the corner, Every tenth that the gallon of gasoline rises becomes a political problem.
