Oil falls 15% after soaring to 4-year highs on reports White House weighs options to ease price run-up

Core Insights - Oil prices experienced significant volatility, initially surging over 25% to exceed $119 per barrel before falling more than 15% intraday on Monday, reflecting the impact of escalating tensions in the US-Iran conflict [1][2] - The conflict has led to a substantial disruption in tanker traffic through the Strait of Hormuz, with approximately 16 million barrels per day stranded, which could potentially drive prices to $150 or higher if the closure persists [4] Oil Price Movements - Brent crude and WTI crude prices are currently up approximately 37% and 40% respectively since the onset of the conflict [2] - The national average price of gasoline in the US rose to $3.478 per gallon, marking a 16% increase from the previous week's average of $2.997 [4] Market Reactions - US stocks initially fell at the start of trading on Monday but managed to reduce losses by mid-afternoon [3] - The G7 nations convened to discuss potential strategic petroleum reserve drawdowns but ultimately decided against immediate action, indicating a possible confidence in stabilizing prices [6] Government Measures - President Trump is reportedly considering various measures to control rising oil prices, including potential releases from the strategic petroleum reserve and adjustments to the Jones Act [5]