White House Braces for Potential $150 Oil Amid Iran War

Administration officials consider emergency actions to address supply chain disruptions and rising gas prices.

Mar. 31, 2026 at 10:52pm

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As the ongoing conflict with Iran continues to choke global oil supply, the White House is bracing for the possibility of oil prices spiking to $150 per barrel or higher. Administration officials are reportedly exploring every possible option, including the use of emergency powers, to try to alleviate the pain at the pump for American consumers.

Why it matters

Skyrocketing oil prices would have a devastating economic impact, acting as a massive tax on consumers and disproportionately hurting low-income households. This crisis underscores the vulnerability of the global energy system to geopolitical shocks and the need for the U.S. to continue bolstering its domestic energy production capabilities.

The details

White House officials are deeply concerned about the trajectory of oil prices, which have already risen more than 40% in just a few weeks due to the disruption of supply from the Strait of Hormuz. With Iran effectively blocking much of the oil and gas traffic through this critical chokepoint, an 'air pocket' in global supply is expected to hit the U.S. market in the next two weeks, leading to further spikes in diesel, jet fuel, and transportation costs.

  • The Iran conflict began in late March 2026, causing oil prices to skyrocket.
  • The 'air pocket' in global oil supply is expected to hit the U.S. market in about two weeks.

The players

White House

The executive office of the President of the United States, currently led by President Donald Trump, is exploring emergency actions to address the oil supply crisis and rising gas prices.

U.S. Department of Energy

Top officials at the DOE have canceled trips and are focused on monitoring the Iran situation and its impact on energy prices.

Rory Johnston

An oil analyst who writes the newsletter 'Commodity Context', predicting that the coming 'air pocket' in global oil supply will be 'really hard on consumers' and act as a 'massive tax' on disposable income, especially for low-income households.

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What they’re saying

“They're trying to come up with every conceivable idea that might alleviate energy prices, including the exercise of emergency powers and authorities and national defense reasons to address the supply chain disruption in the Strait of Hormuz.”

— Industry official, Familiar with internal White House discussions

“The Administration continues to explore additional options it can take as needed to further mitigate any short-term supply disruptions.”

— Taylor Rogers, White House spokesperson

“This is going to be really hard on consumers. This is going to be effectively a massive tax that will sap excess disposable income. It will hit poor households in a much larger way.”

— Rory Johnston, Oil analyst

What’s next

The White House is expected to announce emergency measures in the coming days to try to address the oil supply crisis and rising gas prices for American consumers.

The takeaway

This energy crisis underscores the fragility of the global oil market and the need for the U.S. to continue strengthening its domestic energy production capabilities to insulate itself from geopolitical shocks. The potential for $150-per-barrel oil would have severe economic consequences, especially for low-income households, and the White House is scrambling to find solutions.