WHAT’S HAPPENING TODAY: Good afternoon and happy World Oceans Day, readers! 🌊🐳

The war in the Middle East escalated over the weekend, with Iran and Israel exchanging fire and hindering President Donald Trump’s efforts to end the conflict. 🇺🇲🇮🇷 International and domestic oil prices this morning responded to the attacks. 🛢️

Meanwhile, as the war has caused fuel prices to rise, Europeans are now cutting back on how much they drive. At least six European countries have seen a double-digit decline in auto fuel sales. We’ve got more of the details 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.

LATEST ON IRAN: Iran and Israel have agreed to halt attacks after exchanging missile strikes over the weekend. 

The attacks over the weekend threatened to derail President Donald Trump’s efforts to end the war in the Middle East. The attacks, started by the Iranians, compromise the terms of their ceasefire agreement with the U.S. Trump this morning urged the two to end the attacks. 

“Both sides, Israel and Iran, are looking to do an immediate CEASEFIRE! Final negotiations on ‘Peace’ are proceeding, subject to ignorance or stupidity getting in its way,” Trump said in a social media post this morning. “Israel and Iran must immediately stop ‘shooting.'”

WHERE PRICES STAND: International and domestic oil prices shot up in early trading today over the escalated attacks between Israel and Iran. At one point, prices gained by more than 5%. 

By mid-afternoon, though, Trump’s pleas calmed the markets and prices settled even further after Tehran and Beirut agreed to stop all strikes. 

Just before 3:30 p.m. EDT, Brent Crude was up 1.20%, selling at $94.21 a barrel. West Texas Intermediate had also increased by 0.66% and was selling at $91.14 a barrel. 

Jet fuel production reaches record highs: The U.S. Energy Information Administration said that U.S. jet fuel production has reached record highs due to the rise in prices caused by the Strait of Hormuz being closed. Europe and Asia previously relied heavily on fuel from the strait and much of the production in the U.S. is being exported. 

It said that the four-week average production of U.S. jet fuel in late-February was 1.7 million barrels per day. In the week ending May 1, the four-week average production surpassed 2.0 million barrels per day for the first time on record. Jet fuel prices have doubled since the start of the year. 

EUROPEAN DRIVERS CUT BACK ON FUEL AMID SOARING COSTS: New data reveals that motorists in Europe have been cutting back on the amount of gasoline they have been using this spring, as prices remain elevated due to the extended closure of the Strait of Hormuz and broader war in Iran. 

The details: Data released by Eurostat, reviewed by the Financial Times, found that sales of automotive fuel dropped by 3.5% by volume in the Eurozone in April compared to the same time last year, marking the largest year-over-year decline in three years. 

At least six European countries saw double-digit drops in auto fuel sales, including Germany, Norway, and Austria. The United Kingdom also saw sales dip by 10%. 

The declines come as at least 12 countries in the European Union have reported diesel prices increasing by more than a third for the year ending in April. On average, diesel in the EU has jumped more than 33%. Similarly, gasoline prices have risen 13.6% year-over-year. 

Our view: The drop in automotive fuel sales indicates that European drivers are attempting to ease the pain of higher prices by changing their own behaviors, driving less or more efficiently. In March, the International Energy Agency encouraged governments to push residents to work remotely, lower speed limits, and advocate for public transportation to ease global demand as supply remains crunched by the war. 

U.S. DELEGATION HEADED BACK TO VENEZUELA: A delegation of Trump administration officials is reportedly traveling to Venezuela in order to put more pressure on the South American country’s government to further reform its laws to draw in investments from foreign oil companies. 

Two people familiar with the plans confirmed to E&E News that the delegation will travel to Venezuela in the coming days. It is not expected to include high-level officials, such as Energy Secretary Chris Wright and Interior Secretary Doug Burgum, who have already traveled to the country. Instead, the delegation is expected to be made up of members of the White House’s National Energy Dominance Council and representatives from the State Department. 

Some background: Following the U.S. capture of former dictator Nicolas Maduro, Venezuela’s interim government approved broad changes to its hydrocarbon laws, reopening its oil industry to foreign investment. The Trump administration has also eased sanctions related to Venezuelan oil, allowing U.S. companies to directly do business with state-owned oil firm PDVSA, as well as Venezuela’s central bank. 

While the changes have led to significant interest from foreign oil companies to invest, majors such as Exxon Mobil have been cautious to jump right back into the country. Last month, the Wall Street Journal reported that Exxon has reportedly been left disappointed by the state of Venezuela’s oil fields as well as terms being negotiated with the new government. Restarting an old project or launching a new one could cost the company as much as $10 billion. 

HOUSE VOTES ON BIPARTISAN CRITICAL MINERAL BILL: The House is set to vote on a bipartisan bill aimed at improving the government’s international coordination on critical minerals. 

Lawmakers will vote this evening on California Republican Rep. Young Kim and Democratic Rep. Ami Bera’s Developing Overseas Mineral Investments and New Allied Networks for Critical Energies Act, or DOMINANCE Act. The bill was co-sponsored by 10 Democrats. 

What would the bill do? The bill would establish several changes in the State Department to improve international coordination on critical minerals. For instance, the bill would establish the Bureau of Energy Security and Diplomacy in the department to focus on international energy, critical minerals, and supply chain strategy. The bureau is similar to the Bureau of Energy Resources, which was eliminated last year as part of the administration’s reorganization efforts. 

It would also establish multi-year energy security compacts with partner countries to diversify the supply chain and counter economic coercion. It would also formalize the U.S. participation in the State Department’s new international critical mineral initiative, known as the Forum on Resource Geostrategic Engagement or FORGE. 

The bill would also encourage the creation of a special advisor to the president for critical minerals and supply chain to oversee the whole-of-government approach. 

Stay tuned for the latest from Maydeen on the bill. 

ICYMI – PHILIPPINES ROCKED BY DEADLY EARTHQUAKE: Early today, an offshore magnitude 7.8 earthquake hit the southern Philippines, leaving dozens of people dead and hundreds more injured. 

What happened? The quake struck at roughly 7:37 a.m. local time, hitting the southern region of Mindanao. It was the strongest earthquake to hit the Philippines this year, and was detected at a depth of 20 miles and was about 20 miles southwest of Maasim town in the Sarangani province, according to the Philippine Institute of Volcanology and Seismology. 

The fall out: The quake caused a 3-foot tsunami, damaging at least one southern coastal village, according to the Associated Press. Smaller tsunami waves were also reported in Indonesia and Palau. 

The quake also caused a landslide in Saragnani, killing at least 13 villagers. 

So far, at least 35 people have been killed in the aftermath of the quake and more than 200 others injured. 

You can read some firsthand accounts of the incident from the Associated Press here. 

A LOOK AHEAD 

June 8 – 9 The California Hydrogen Summit is being held in Sacramento, California. 

June 8 The GRIDIRON Finale, a conference focused on policy related to upgrading and modernizing the electrical grid, is being held in Washington, D.C.

June 9 The Center for Strategic and International Studies is holding an Ocean Security and Human Rights Forum. 

June 9 The House Energy and Commerce Subcommittee on Energy is holding a hearing analyzing permitting reform needs for nuclear energy development. 

June 9 – 10 The Energy Imperatives Summit is taking place in Washington, D.C. 

June 9 – 10 The Atlantic Council’s Energy Forum is being held in Washington, D.C. 

June 10 Politico's Energy Summit is taking place in Washington, D.C., featuring remarks from Environmental Protection Agency Administrator Lee Zeldin, Nuclear Regulatory Commission Chair Ho K. Nieh, and many more. 

June 10 The National Electrical Manufacturers Association, ASHRAE, and Pacific Northwest National Laboratory are launching an AI Data Center Energy Performance Framework.
June 10 The Senate Energy and Natural Resources Committee is holding a legislative hearing. 

June 10 The House Natural Resources Committee is holding a markup hearing for several conservation-related bills. 

June 10 The House Science, Space, and Technology Committee is holding a hearing to review the fiscal year 2027 budget request for the Department of Energy. 

June 10 The Senate Environment and Public Works Committee is hosting a hearing to review the fiscal year 2027 budget for the U.S. Fish and Wildlife Service. 

June 10 The Senate Energy and Natural Resources Committee is holding an oversight hearing to examine the Colorado River Basin. 

June 11 The FIFA World Cup begins! ⚽

June 11 The U.S. Chamber's Critical Minerals Summit will be held in Washington, D.C.

June 12 Advanced Energy United is holding a webinar titled, “PJM Under Pressure: Will Proposed Reforms Meet the Moment?” 

June 12 The House Natural Resources Committee is holding a legislative field hearing regarding the Great American Outdoors Act 250 in Hot Springs, Arkansas. 

RUNDOWN 

E&E News The West’s water war arrives in Washington

Grist Why are so many Democrats going quiet on climate change?

Reuters Why the Iran-aligned Houthis threatening Red Sea shipping could mean more for the oil market this time