Plus, we have some sad news, as emperor penguins and the Antarctic fur seal have been listed as endangered species, due to the effects of climate change. 🐧🦭 We have more on this below.

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.

IRAN WAR AND OIL PRICE WATCH: Oil prices briefly jumped back above $100 per barrel earlier today, as traffic through the Strait of Hormuz remains very minimal despite the ceasefire agreement. 

West Texas Intermediate futures had jumped to over $100 per barrel this morning, after executives with the Abu Dhabi National Oil Company said on social media that the Strait of Hormuz was closed. 

“Iran has made clear – through both its statements and actions – that passage is subject to permission, conditions and political leverage,” CEO Sultan Al Jaber wrote on LinkedIn. “That is not freedom of navigation. That is coercion.”

Since the United States and Iran announced the ceasefire agreement on Tuesday, only a handful of vessels have passed through the narrow waterway. 

Shipping data reviewed by NBC News found that only five bulk carriers transited in the first 24 hours. Other trackers have estimated at least nine. Over the course of 24 hours from Wednesday into Thursday, shipping data reviewed by Reuters revealed that seven additional ships passed through the strait – only of which was carrying oil. Russian state media has reported that Iran will not allow more than 15 ships to pass through the strait each day. 

Analysts have warned that two weeks will not be enough to clear the backlog of hundreds of vessels waiting to transit through the Persian Gulf. 

By this afternoon, oil prices started to pull back from session highs. Just after 2:30 p.m. EDT, WTI was up by 3.59% and was selling at $94.80 per barrel. Brent Crude also increased by 1.22% and was priced at $95.91 per barrel. 

What about gasoline? While oil has dipped back below $100 per barrel, there are few signs that gasoline prices will follow suit and decline significantly. 

In fact, the average national prices of gasoline increased once again to $4.166 per gallon today, according to estimates from AAA. Diesel is also up, with the average sitting at $5.689 per gallon, just over 10 cents shy of the 2022 record price. 

In a social media post today, GasBuddy petroleum analyst Patrick De Haan explained this is due to the fact that wholesale prices are volatile, while retail prices that consumers see are averaged. 

“Stations raise prices quickly when costs jump to avoid losses, but when costs fall, they lower prices gradually as they sell through higher-priced inventory,” De Haan wrote. “So instead of prices bouncing wildly, what drivers see is actually a slower climb- and an even slower descent.”

MEXICO TAPS NATURAL GAS DEPOSITS: Mexican President Claudia Sheinbaum said she is proposing a plan to tap unconventional gas reserves to offset energy disruptions caused by the war in Iran. 

Mexico relies on imports of natural gas. Specifically, two thirds of its supply comes from the United States, the Financial Times reports. 

“If we don’t do anything we will be importing more and more,” Sheinbaum said. “What’s the problem with importing? Just look at how lots of countries in the world are suffering because of what happened in Iran.”

Sheinbaum, a former climate scientist who has vowed to expand the country’s renewable energy sources, avoided using the word “fracking.” She said an environmental committee would spend two months seeking to look for “a sustainable way” to extract the gas. 

WHITE HOUSE ISSUES RECOMMENDATIONS ON PERMITTING SHORTCUTS FOR AGENCIES: The White House is furthering its effort to accelerate the federal permitting process by issuing guidance on how federal agencies should use categorical exclusions when giving approvals for energy and infrastructure projects. 

The details: Earlier today, the Council on Environmental Quality issued guidance on how agencies can establish, revise, adopt and apply categorical exclusions in order to lift “excessive permitting burdens.” Categorical exclusions are issued by agencies during the federal permitting process when they determine that a project will not have a significant effect on the environment. If issued, these exclusions can cut months and years off the permitting process. 

The White House is encouraging federal agencies to issue these exclusions as much as possible, while also working with other agencies to establish joint exclusions in order to streamline the permitting process. 

The new guidance appears to encourage agencies to look for potential categorical exclusions for each project, and if there is not one, consider options for establishing an exclusion. 

“It should never take longer to permit a critical infrastructure project than it takes to build it. Federal permitting needs to work better and the Trump administration is committed to making that happen,” CEQ Chairman Katherine Scarlett said. 

Quick reminder: The National Environmental Policy Act requires federal agencies to study the environmental effects of infrastructure projects – such as transmission lines, highways, pipelines, and more – before issuing permits necessary for construction. 

The Trump administration moved last year to remove strict rules on how agencies implement NEPA, replacing the regulations with suggested guidance. You can read more on this here. 

EPA PROPOSES CHANGES TO COAL COMBUSTION: The Environmental Protection Agency has proposed changes to its regulations about how waste from burning coal is handled, also referred to as coal combustion residuals (CCR). 

CCR is known as coal ash, which is the byproduct of burning coal at a power plant. The agency said the proposal would encourage beneficial use of CCR to “create environmental and economic benefits while reducing the need for disposal.”

It would also set standards for CCR storage piles and establish a new pathway for CCR units to comply with “groundwater monitoring, corrective action, closure, and post-closure requirements under federal or approved state CCR permits.” 

EPA Administrator Lee Zeldin said, “These commonsense changes to the CCR regulations reflect EPA’s commitment to restoring American energy dominance, strengthening cooperative federalism, and accommodating unique circumstances at certain CCR facilities.” 

The EPA’s proposal will undergo a 60 day comment period and will hold public hearings. The Trump administration has made an effort to prop up the coal industry through deregulation and preventing old coal plants from retiring. 

Lawsuits on the way: Climate groups were quick to speak against the EPA’s proposed changes. Earthjustice said it plans to sue, stating the rule would dismantle protections for both operating and former coal power plants. 

“The Trump administration just took a sledgehammer to the health protections in place for toxic coal pollution,” said Lisa Evans, senior counsel at Earthjustice.

The Sierra Club said it plans to fight back against the proposal, calling it “illegal.” 

“Our government should be strengthening safeguards against this toxic threat; instead, Donald Trump and Lee Zeldin are taking a sledgehammer to them,” said Bridget Lee, senior attorney at the Sierra Club. 

EUROPE PROPOSES EASING METHANE RULES: The European Union is reportedly considering relaxing its stringent methane reporting regulations on imported fossil fuels amid the Iran war, a move that would be a major win for the Trump administration. 

The European Commission’s director-general for energy, Ditte Juul Jørgensen, recently confirmed that the commission would be recommending “flexibilities” to the bloc’s methane requirements, according to the Financial Times. 

If you forgot: Current EU laws require oil and gas producers within the bloc to monitor and report methane emissions associated with their operations. Starting in 2027, the EU will require foreign exporters to comply with the rules, including limitations on methane emissions. Suppliers who are found to be in violation of the methane limit will be subject to massive fines and potential contract cancellations. 

What’s new: The Trump administration has pressured the EU to ease or fully roll back the rules in order to increase exports of liquefied natural gas to the region. While the bloc has resisted relaxing the emissions regulations, the war in Iran appears to have forced its hand. 

Jørgensen revealed that the commission is proposing allowing imports to only show that a sufficient share of their fossil fuel production meets requirements, rather than going back and tracking each specific cargo. 

The bloc is also reportedly considering softening financial penalties for those who fail to comply with the regulations, to prevent any cargoes from being diverted or delayed. 

EMPEROR PENGUINS AND FUR SEAL LISTED AS ENDANGERED: The International Union for Conservation of Nature formally listed the emperor penguin and Antarctic fur seal as endangered on its Red List of Threatened Species. 

What’s at fault: The IUCN has primarily said the reclassification is due to the effects of climate change on the penguin and seal populations in Antarctica. The international conservation organization said climate change has caused high levels of early break-up and loss of sea ice, threatening crucial habitats for emperor penguin chicks. Rising ocean temperatures are also pushing krill deeper into the ocean, lowering the availability of food for the Antarctic seals. 

The IUCN estimates that, under current conditions, the emperor penguin population will be cut in half by the 2080s. Fur seals have already seen their population halved from more than 2 million mature seals in 1999 to less than 1 million in 2025. 

Key quote: “These listings are not only sobering for two iconic animals; they reflect what is happening to penguins and seals globally,” Kathleen Flower, Vice President of Biodiversity Science at Conservation International, said in a statement. “Their decline underscores how quickly ecosystems are being degraded and how the compounding impacts of warming accelerate food scarcity, emerging disease, and habitat loss.”

RUNDOWN 

The Guardian Bitten by snakes 200 times – on purpose: US man’s quest to help deliver new antivenom

Associated Press Ocean protections clash with mining pressure in Indonesia’s most diverse marine ecosystem

Washington Examiner Why oil prices are falling faster than gas prices after the Iran ceasefire