Brent: Policy options temper price spike – MUFG

MUFG’s Senior Currency Analyst Michael Wan notes that Brent Oil has eased to around US$85/bbl as the US administration considers multiple policy tools to address higher Oil and gasoline prices during the Iran conflict. Potential measures include strategic reserve releases, regulatory waivers and even futures market intervention, leaving global and Asian markets cautious about weekend gap risks.

US policy debate cools Brent prices

"Brent oil prices moderated slightly to US$85/bbl, as reports emerged that the Trump administration is weighing options for addressing the spike in oil and gasoline prices amid the war in Iran, according to US Secretary Doug Burgum."

"The potential policies being considered include releasing crude from the country’s emergency oil reserve potentially in coordination with other nations to maximise effect, waiving fuel-blending requirements and even direct intervention in oil futures markets."

"This comes on top of previously announced plans to provide insurance guarantees and naval escorts to ensure safe passage for oil tankers and other vessels through the Strait of Hormuz."

"In an interesting move as well, the US Treasury just announced waivers for India’s purchase of Russian oil for 30 days until 4 April 2026, in a move that perhaps recognises that one cannot have his cake and eat it too in wars on multiple fronts."

"Overall, it is unclear how much impact this could have from a global perspective, including for our region here in Asia."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)