The Trump administration is considering new measures to address rising energy prices amid Middle East tensions, with a focus on stabilizing shipping through the Strait of Hormuz. Wolfe Research analysts say the government's policy tools may be limited, though a proposed maritime insurance program backed by the U.S. International Development Finance Corporation appears legally feasible.

Tobin Marcus of Wolfe Research noted that the agency has broad authority to provide insurance against political risks, including war. The plan aims to encourage tanker traffic through the strategic waterway, but its effectiveness remains uncertain. Analysts question whether private shipping companies will trust the government-backed coverage enough to transit the Strait of Hormuz amid ongoing conflict.

Beyond maritime insurance, few strong policy levers exist if oil disruptions worsen. Options include tapping the Strategic Petroleum Reserve, adjusting biofuel policies, or implementing a gasoline tax holiday requiring congressional approval. Marcus believes market outcomes will depend more on battlefield dynamics than economic policy, suggesting that developments in the Iran conflict will ultimately drive energy price impacts.