White House Braces for Potential $150 Oil Amid Iran War

Administration officials fear oil could spike as high as $200 per barrel as conflict disrupts global supply.

Apr. 1, 2026 at 2:33am

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Trump administration officials are preparing for the possibility that oil prices could climb above $150 per barrel as the war with Iran continues, according to multiple sources. The White House is exploring emergency powers and other measures to try to bring down costs and prevent a major spike in gas prices that could severely impact American consumers.

Why it matters

A sustained rise in oil prices to $150 or even $200 per barrel would represent a major economic shock, sapping disposable income from households and businesses across the United States. This could lead to a broader economic slowdown, higher inflation, and significant hardship for lower-income Americans who spend a larger portion of their budgets on fuel and energy costs.

The details

According to Politico, White House officials are in "all hands on deck" mode to try to prevent oil prices from spiking as the conflict with Iran continues. This includes exploring the use of emergency powers and authorities to address supply chain disruptions in the Strait of Hormuz, which Iran has threatened to block. Top staffers at the Energy Department have also canceled trips to remain in Washington and monitor the situation.

  • The White House is bracing for the possibility of oil prices spiking in the next two weeks, as the impact of Iran blocking the Strait of Hormuz is expected to be felt in the U.S. market.
  • The war in Iran began earlier this year, leading to concerns about global oil supply and prices.

The players

Donald Trump

The former president whose administration is now dealing with the potential fallout from the Iran war and rising oil prices.

Stephen Moore

A former economic adviser to President Trump who called a scenario of $150 oil a "nightmare" that would have severe negative effects.

Rory Johnson

An oil analyst who warned that the real damage from the war has not yet been felt, and that a spike in prices would "hit poor households in a much larger way."

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What they’re saying

“All the economics team over there that I've talked to, they're all aware of the negative effects of rising oil and gas prices. It's no big shocker that the president is now really focused on getting that down as quickly as possible.”

— Stephen Moore, Former Economic Adviser to President Trump

“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 Johnson, Oil Analyst

What’s next

The White House is exploring all options, including emergency powers, to try to prevent a major spike in oil and gas prices that could severely impact American consumers. Administration officials will continue to monitor the situation closely as the conflict with Iran continues to disrupt global energy markets.

The takeaway

The potential for oil prices to spike to $150 or even $200 per barrel due to the Iran war represents a serious economic threat that the White House is scrambling to address. A sustained rise in energy costs of this magnitude would have widespread negative impacts, especially on lower-income households, and could lead to broader economic turmoil if not managed effectively.