Former President Donald Trump is preparing to utilize legal authority from the Cold War era to pave the way for restarting oil production off the coast of Southern California. This long-shot effort is intended to alleviate global crude supply tensions heightened by conflict involving Iran.

According to an individual familiar with the matter, the Trump administration will soon invoke authorities under the Defense Production Act, which can supersede state laws, to streamline the approval process for Houston-based Sable Offshore Corp. The company is seeking to resume large-scale production from a set of offshore platforms in California. The source requested anonymity as the plans are not yet public.

Following the news, Sable's stock price surged as much as 34% before trading was halted. Over the past year, the company's shares have experienced significant volatility and have been suspended multiple times.

The proposed executive action comes as Trump faces substantial political pressure to address rising fuel prices ahead of the November midterm elections. The election outcome is widely seen as dependent on American voters' perceptions of living costs.

A White House official stated that any policy announcement would be made by the President personally. Sable did not immediately respond to a request for comment.