Washington to launch program aimed at stabilizing oil market amid war with Iran

(Patria) - The United States will begin implementing a program aimed at easing rising oil prices and calming global markets affected by the escalation of the war with Iran on Tuesday, stated Secretary of State Marco Rubio, Al Arabiya reported.

Speaking as US military operations against Iran continue, Rubio said the administration is working across all agencies to prevent energy shocks from exacerbating the geopolitical crisis.

"So, we knew that was going to be a factor," Rubio told reporters before briefing lawmakers on Capitol Hill about Operation "Epic Fury".

Rubio said discussions were held with the US Secretaries of Energy and Treasury on Sunday night and again on Monday morning.

"And starting tomorrow, you will see us roll out those phases to try to mitigate that. Obviously, markets will react to news of what is happening," Rubio said.

Rubio further pointed out that Iran has the capability to potentially shut off twenty percent of global energy.

"That is the kind of leverage they have because of their navy. We will destroy their navy, but there is a plan," he said.

Crude oil prices jumped more than six percent on Monday, likely signaling higher gasoline prices at the pump across the United States.

Nevertheless, the NASDAQ and S&P 500 finished trading with modest gains of less than 0.1 percent. The Dow Jones fell by less than 0.1 percent.

Iran had previously threatened to target oil facilities and shipping lanes in response to US attacks, sparking fears of supply shortages and broader economic consequences.

Energy analysts warn that even the perception of instability in the Strait of Hormuz, through which about a fifth of the world's oil supply passes, can cause sharp price changes.

Insurance premiums for tankers operating in the region have already risen, and several shipping companies are reportedly reconsidering their risk assessments.