Strait status confusion, oil drops, and Exxon goes to Texas

Now, did the U.S. Navy escort oil tankers through the Strait of Hormuz today? That’s the question many were asking today after Energy Secretary Chris Wright briefly posted that the Navy successfully escorted tankers through the strait. The post was quickly deleted – so what actually happened? Here’s what we know. 🤔🚢

Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.

A DEPARTMENT OF ENERGY SLIP-UP: Confusion swept across social media this afternoon after Energy Secretary Chris Wright shared a post on X claiming that the U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz. The move would be a major sign that flows of oil and gas could begin to slowly tick back to normal levels. But the claim was taken down roughly 15 minutes after it was posted. 

Not long after, during an already scheduled White House press briefing, press secretary Karoline Leavitt told reporters, “I can confirm that the U.S. Navy has not escorted a tanker or a vessel at this time.”

It was not immediately clear why Wright, or his staff, had made the post. As of 2:30 p.m. EDT, the Department of Energy had not responded to Daily on Energy’s inquiry.

President Donald Trump first floated the idea of naval escorts through the strait last week, as a course of action to stabilize global energy markets. 

G7 LOOKS TO INTERNATIONAL ENERGY AGENCY ON TAPPING RESERVES: Another move the administration could take is tapping the nation’s oil reserves, pumping additional supply into the markets. So far, the United States and other member nations of the G7 have avoided committing to a joint release of more oil. The idea, though, is being seriously considered. 

The details: Earlier today, energy ministers with the G7 held a virtual meeting to discuss just that – as the finance ministers did yesterday. They, too, stopped short of agreeing to jointly release oil reserves, and are instead looking to the International Energy Agency for further assessments. 

In a statement released this morning, IEA executive director Fatih Birol revealed that IEA member countries hold over 1.2 billion barrels of public emergency oil stocks, and have another 600 million barrels of industry stocks under government obligation. 

IEA member governments were expected to meet later today to discuss the current security of supply and market conditions in order to decide whether any of these emergency stocks should be made available. 

LATEST ON OIL PRICES: Crude oil prices continued to fall after the G7 energy minister meeting this morning, sending a signal that the traders are no longer as fearful of supply disruptions caused by the war in Iran.

Prices are still elevated compared to last week, though as of just before 3 p.m. EDT, both international and domestic benchmarks fell by at least 10% compared to record levels seen yesterday. This afternoon, Brent Crude had fallen by 10.72% and was priced at $88.51 per barrel. West Texas Intermediate was also down 11.24% and was selling at $84.12 per barrel. 

The EIA’s forecast: The elevated prices will prop up the domestic oil and gas industry, the Energy Information Administration is now forecasting. In the latest Short-Term Energy Outlook, the agency estimated that Brent Crude will remain above $95 per barrel over the next two months and only fall below the $80 line in the third quarter of this year. 

These high prices will lead to more oil production, the EIA said, with production averaging 13.6 million barrels per day in 2026. The EIA is also forecasting that production will rise to 13.8 million barrels per day next year, 0.5 million higher than last month’s prediction. 

A HEALTH WARNING OUT OF IRAN: The World Health Organization is cautioning individuals in and around Iran to remain indoors, warning that strikes on oil and gas facilities in the last week are resulting in “black rain” and toxic chemicals that threaten air quality. 

“The black rain and the acidic rain coming with it is indeed a danger for the population,” WHO spokesperson Christian Lindmeier told members of the press. 

Iran has directly advised residents to stay indoors as black smoke has covered major cities including Tehran. WHO backed the advisory today, with Lindmeier saying, “Given what is at risk right now, the oil storage facilities, the refineries that have been struck, triggering fires, bringing serious air ​quality concerns, that is definitely a good idea,” according to Reuters. 

WHO also warned that the strikes on facilities such as oil refineries have released toxic hydrocarbons, sulfur oxides, and nitrogen compounds into the air. Inhaling or coming in contact with these toxins is said to cause headaches, skin or eye irritation, difficulty breathing, or even risk of cancer.

PAT HARRIGAN INTRODUCES BILL TO PROTECT TAIWAN’S ENERGY SUPPLIES: Republican Rep. Pat Harrigan of North Carolina plans to propose a bill that would address Taiwan’s energy insecurities to safeguard the island from potential threats by China. 

Harrigan’s bill, the Taiwan Energy Security and Anti-Embargo Act of 2026, would direct the secretary of state to identify and address barriers to liquefied natural gas exports and storage to Taiwan. It is also meant to boost LNG exports by redirecting the flow from China to Taiwan. 

The Department of Energy and State Department would also establish the U.S.-Taiwan Energy Security Center and prioritize assistance with Taiwan on nuclear energy. 

The bill states the Transportation Department would offer insurance and reinsurance for ships transporting critical energy, humanitarian, or other goods to Taiwan or another U.S. strategic partner facing coercive maritime threats. 

Read more about the bill by Maydeen here. 

SOLAR REMAINS DOMINANT SOURCE OF NEW POWER: Solar power dominated over all other sources of energy last year, accounting for more than 50% of all new electricity generating capacity added to the grid, according to a new report. 

The details: The Solar Energy Industries Association said in its 2025 solar market insight report this morning that the solar industry installed roughly 43.2 gigawatts direct current of capacity in 2025. This is a roughly 14% decrease from 2024, which does not come as a surprise, given the administration’s crackdown on renewable energy projects.

Still, even with the decrease, solar made up the largest amount of new generation, at roughly 54% of all new electricity generating capacity added in the U.S. in 2025. When accounting for solar and storage projects together, that number jumps to 79%. At this rate, analysts estimate that solar will make up roughly half of new electricity capacity added annually through 2060. 

This likely will grow in the coming years as the industry expands its domestic manufacturing capabilities. The report found that, in 2025, solar module manufacturing grew more than 50%. 

Key quote: “Solar and storage continue to dominate new capacity additions to the grid despite policy headwinds. American households and businesses of all sizes are demanding solar + storage because they deliver fast, affordable power to help meet rapidly rising demand,” Darren Van’t Hof, Interim President and CEO of SEIA, said.

DOE TAKES OVER ENERGY STAR: The Department of Energy is taking over the Energy Star program from the Environmental Protection Agency after the initiative faced threats of termination. 

Last week, the DOE and EPA signed an agreement to transition the Energy Star program to the DOE. The Energy Star program has been around since the 90s and is meant to help reduce emissions by labeling energy efficient products. You may have seen “energy star” labels on refrigerators, washers, and heat pumps. 

The Trump administration last year proposed eliminating funding for an EPA division that manages the program in its fiscal year 2026 budget request. But, Congress approved $33 million to the EPA for Energy Star, slightly more than FY2024. 

The move to shift the Energy Star program to the DOE has provided those in the industry with hope that the program is here to stay. 

Todd Sims, a senior director of regulatory and industry affairs at the National Electrical Manufactures Association, told Maydeen, “we have all the faith in the world that DOE will be able to run the program.” 

The agreement between the DOE and EPA provides 90 days to develop a transition plan. Sims said that he hopes that the two agencies engage with stakeholders to talk about what they envision for the future of the program. 

He added that, last year, a coalition of home builders, manufactures, and advocacy groups signed a letter asking the administration to keep the program. Sims said the coalition’s effort to keep the federal program “speaks to the benefit and the broad acceptance of the program.” 

EXXON CHANNELS GEORGE STRAIT, SAYING ‘TAKE ME TO TEXAS’: Exxon Mobil is heading back west. 

The oil and gas major is seeking to abandon its corporate registration in New Jersey. Exxon – which is headquartered in Spring, Texas – is planning to redomicile in the Lone Star State.  The decision was announced in a proxy filing and still has to be approved by shareholders before taking effect. 

“Over the past several years, Texas has made a noticeable effort to embrace the business community. In doing so, it has created a policy and regulatory environment that can allow the company to maximize shareholder value,” Exxon CEO Darren Woods said. “Aligning our legal home with our operating home, in a state that understands our business and has a stake in the company’s success, is important.”

Exxon has said the move would not affect any business operations, management, strategy, assets, employee locations, or reduce shareholder rights. 

It could, however, better protect the oil major from environmental lawsuits, like the one filed by New Jersey officials against Exxon and other fossil fuels firms over their contributions to climate change. 

EUROPEAN UNION CALLS PHASING OUT NUCLEAR A ‘MISTAKE’: The European Union is officially changing its tune on nuclear energy, regretting the years its member countries spent shutting down large reactors. 

The details: Earlier today, European Commission President Ursula von der Leyen said the EU made a “mistake” in phasing out nuclear energy. She pointed to the fact that in 1990, the carbon-free power source supported one-third of Europe’s electricity demand. Today, it only makes up about 15%. 

“I believe that it was a strategic mistake for Europe to turn its back on a reliable, affordable source of low-emissions power,” she said. 

The embracing of nuclear power comes as the European Commission plans to unveil a strategy to develop small modular reactors in the EU in order to meet soaring energy demand brought on by artificial intelligence. The commission is aiming to have these smaller reactors operational by the early 2030s. 

ICYMI – TRUMP WARNS OF STRONGER ATTACKS IF IRAN HALTS OIL FLOWS THROUGH STRAIT OF HORMUZ: Trump threatened Iran with even stronger attacks if oil flows come to a complete stop through the Strait of Hormuz, as the administration seeks to allay market fears and lower gas prices. 

Trump issued the threat late last night in a post to Truth Social saying, “If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far.”

The president said U.S. forces would be able to easily take out targets that would prevent Iran from building up again as a nation. 

“Death, Fire, and Fury will reign upon them – But I hope, and pray, that it does not happen!” Trump wrote, calling his threat a “gift” from the U.S. to all the nations that heavily rely on oil flows from the narrow waterway. 

“Hopefully, it is a gesture that will be greatly appreciated,” Trump said. 

Back and forth: His warning of escalation from the U.S. adds to the confusing timelines the Trump administration has put out on how long it expects the war against Iran to last. 

Yesterday afternoon, Trump said that U.S. forces were “very close to finishing.” However, one day before, War Secretary Pete Hegseth said “this is only just the beginning.” 

Read more from Examiner defense reporter Mike Brest here. 

RUNDOWN 

Washington Examiner Why Iran’s main oil terminal at Kharg Island has been spared

E&E News Why the Clean Air Act was never a ‘good fit’ for climate

Inside Climate News The Latest Tactic for Silencing Ecuador’s Environmental Defenders: Shuttering Their Bank Accounts