Global energy markets experienced extraordinary volatility over the weekend and into Monday as the U.S.-Israeli military campaign against Iran entered its second week, sending crude oil futures briefly above $119 per barrel. By Monday evening, markets had retreated considerably from those highs following remarks from President Trump at a White House press conference. NEFI has been closely monitoring developments on behalf of its members throughout.

The spike in intraday trading was driven largely by fears of attacks on energy infrastructure and growing uncertainty over the fate of the Strait of Hormuz, the narrow waterway through which approximately 20 million barrels of crude oil pass daily (roughly 20% of global supply). Iranian threats and regional instability have severely curtailed tanker traffic through the strait, rattling energy markets worldwide.

In response, G7 finance ministers convened an emergency meeting Monday morning. The group stopped short of authorizing a coordinated release of strategic petroleum reserves but stated they stand ready to act if conditions deteriorate. The International Energy Agency had separately recommended that member nations consider a preemptive reserve release.

U.S. Energy Secretary Chris Wright said the administration is not planning to tap the Strategic Petroleum Reserve, which currently holds approximately 415 million barrels, about 58% of its 714 million barrel capacity, but left the door open, stating the administration is "more than happy to use that if it's needed."

During a press conference Monday evening, President Trump indicated that U.S. and Israeli forces are ahead of schedule on their military objectives "by a lot" and that he expects the conflict to conclude "soon" – possibly within weeks. He announced that the U.S. military is working to keep the Strait of Hormuz open, including offering political risk insurance and naval escorts to tankers in the region. Energy futures markets responded positively.

NEFI has been in close communication with its membership throughout the crisis. "Our industry has navigated many periods of market volatility over the years,” said NEFI President & CEO Jim Collura. “We will get through these uncertain times by sticking together and supporting each other, and by being responsive to the most important yet most vulnerable player in all of this – the American consumer.”

Collura noted that NEFI's government affairs team is actively monitoring domestic and international developments and will alert members of any policy actions affecting the energy sector.

"We hope for a swift yet satisfactory resolution to this conflict and that, as the President has suggested, greater peace, security, and energy market stability will follow."

For more information, contact NEFI President & CEO Jim Collura at jim.collura@nefi.com.