White House economic adviser Kevin Hassett announced that the administration is reviewing regulatory measures that could speed up the deployment of new U.S. oil production as supply disruptions linked to the Iran war tighten the market.
The move comes after Iranian exports dropped sharply from about 2.1 million barrels per day to roughly 567,000 bpd under the U.S. naval blockade, according to Kpler. There has been no confirmed passage of an Iranian tanker through the blockade zone.
Brent crude was trading near $113.8 per barrel, down 3.58% on the day, while WTI was around $104.6, down 2.11%. U.S. fuel costs are rising alongside it. The national average gasoline price reached $4.30 per gallon as of April 30, according to AAA, up from $4.03 a week ago and $3.99 a month ago.
Hassett said the team has been in constant communication with oil companies and is studying how regulations that slow the process could be changed. President Trump said this week that Iran's oil system could "explode" under pressure, though analysts tracking storage and flows don't see that happening on that timeline. Iran still has weeks of storage capacity, with estimates ranging from roughly one month to more than two months, depending on how quickly production is reduced.
While the administration focuses on near-term supply, the timeline is constrained by project lead times and infrastructure limits. Regulatory adjustments could help shorten those gaps and support U.S. output in the short term.
By Julianne Geiger for Oilprice.com
