Trump Expands Defense Production Act to Fund Energy Projects as Oil Risks $110/bbl Surge

President Trump broadened the Defense Production Act invocation to fund large-scale energy projects—including coal, petroleum, natural gas, and power-grid infrastructure—to curb rising oil, gasoline, and electricity costs amid supply shortages. Initially targeting US petroleum production, refining, and logistics under Section 303 for faster infrastructure expansion like pipelines and export terminals, the policy offers limited near-term crude price impact but improves medium-term supply resilience. Geopolitical risks, such as a prolonged Strait of Hormuz closure, could propel oil toward $110/bbl, fueling near-term bullish momentum for the energy complex despite long-term bearish risk premia.