White House spokeswoman Caroline Leavitt said the move was intended to alleviate short-term disruptions in the oil market and would allow vital resources such as oil, natural gas, fertilizers and coal to flow freely into U.S. ports for 60 days.
Increasing pressure
This decision comes amid increasing pressure on global energy markets as a result of the ongoing conflict in the Gulf region, and the US administration's attempt to curb the sharp rise in gasoline prices and domestic inflation.
Brent crude prices rose after the impact of supply disruptions – ranging from production shutdowns by Gulf producers to renewed attacks on the region’s energy infrastructure – outweighed the positive effects of Iraq resuming oil exports via pipeline to Turkey’s Ceyhan port.
Disrupting exports
But with no signs of the conflict with Iran, which has severely disrupted Middle East oil exports, abating, Brent crude futures have settled above $100 a barrel in the previous four sessions.
Brent crude futures rose $4.21, or 4.07%, to $107.63 a barrel, after falling to $100.34 earlier in the session. U.S. West Texas Intermediate crude futures lost $1.59, or 1.65%, to $97.80.
