[Oil Prices Near $100 Psychological Threshold, Trump Faces 'Dilemma' Over Iran Conflict] BlockBeats News, July 25 – As international oil prices once again approach the critical psychological threshold of $100 per barrel, U.S. President Trump is facing a dwindling set of policy tools amid escalating tensions with Iran, increasing uncertainty in the energy market. Analysts indicate that global emergency reserves of oil and fuel have significantly declined, while risks to Red Sea shipping continue to rise. If the conflict escalates further, the U.S. may face two choices: expand military actions or accept Iran's de facto control over the Strait of Hormuz. Previously, oil prices briefly surged past $100 per barrel following attacks on Red Sea shipping by Yemen's Houthi forces, before retreating. Energy analysts warn that if both the Bab el-Mandeb Strait and the Strait of Hormuz are simultaneously affected, oil prices could climb back to around $124 per barrel in August. Currently, the U.S. has limited policy tools at its disposal: the U.S. Strategic Petroleum Reserve (SPR) has dropped to approximately 311 million barrels, the lowest level since 1983; U.S. shale oil production and refining capacity are near their limits; there is little room to release additional strategic reserves; and measures such as suspending fuel taxes require congressional approval. Analysts point out that $100 per barrel represents not just a price change but also a psychological impact on the market, reinforcing investor concerns about an energy crisis and inflation risks. Meanwhile, Iran believes it holds bargaining power over the Strait of Hormuz issue and is demanding greater control. Some analysts suggest that Trump's core choice at this moment is whether to continue escalating military actions or to seek a resolution through negotiations. Market participants note that with the U.S. midterm elections approaching, high oil prices could further increase political pressure on the Trump administration, while the ultimate resolution will depend on whether the U.S. and Iran can reach a new agreement. [Original Link]