The Trump administration is ruling out using the Treasury Department to trade oil futures as energy prices surge amid the Iran war, according to a person familiar with the matter. Administration officials have discussed having Treasury buy and sell energy futures but believe the agency's ability to meaningfully affect the market is limited given the massive daily trading volume in oil futures.

Officials are also hesitant to tap the Strategic Petroleum Reserve immediately, which sits at only about 60% capacity after heavy withdrawals under the Biden administration. The administration is considering other options, including insurance guarantees and possible naval escorts for tankers through the Strait of Hormuz. Interior Secretary Doug Burgum said Friday that 'everything is being considered' to address spiking oil and gasoline prices.

Oil prices are on track for their biggest weekly surge since 2022, with Brent crude rallying 17%, though prices retreated slightly after Trump signaled 'imminent action.' The White House faces both geopolitical and domestic political pressure as surging energy costs threaten to undermine Trump's claims about lowering living costs ahead of the November midterms. Analysts have suggested additional options like fuel-blending requirement waivers could be on the table.