Global oil markets have been highly disruptive since joint US-Israeli strikes were carried out on several key Iranian sites starting on February 28.
Iran retaliated by striking sites across the Middle East and closing the critical Strait of Hormuz trade route. About 20% of all global oil traded passes through the strait.
The US has since imposed a blockade on Iranian ports in the strait despite a sort-term ceasefire.
Trump in January issued an executive order declaring a National Energy Emergency which found that the US’s inadequate energy production, transportation, refining and generation capacity constitutes an unusual and extraordinary threat to the country’s economy, national security and foreign policy.
The order emphasised that the US’s “current inadequate and intermittent energy supply leaves us vulnerable to hostile foreign actors and poses an imminent and growing threat to the United States’ prosperity and national security.”
Trump said in the order on Monday: “I have declared a national emergency… and I further determine that action to expand the domestic petroleum production, refining, and logistics capacity is necessary to avert an industrial resource or critical technology item shortfall that would severely impair national defense capability.”
The US will on Wednesday meet with Iranian negotiators in Islamabad, Pakistan in an attempt by both sides to reach a long-term peace deal.