US Treasury Secretary Scott Bessent, in a CNBC interview, emphasized that the duration of the ongoing conflict involving Iran and the broader Middle East is a key factor influencing global oil prices and supply stability [1]. Bessent stated that any actions to address oil prices would depend on how long the war persists, underscoring the uncertainty and potential volatility in energy markets [1].
He estimated the current oil supply deficit to be between 10 and 14 million barrels, a figure that signals substantial risk to global energy availability [1]. Bessent also noted that if oil prices were to spike to $150 per barrel, it would significantly benefit Russia, with President Putin potentially receiving increased revenues as a result [1].
Regarding the Strait of Hormuz, Bessent mentioned, "We believe Chinese ships have gone out," suggesting ongoing activity and possible shifts in shipping patterns amid the conflict [1]. Despite these risks, Bessent clarified that the US Treasury has not intervened in oil markets so far, and any future intervention would be contingent upon the evolving situation [1].
Bessent's remarks reflect Washington's cautious approach, with forward-looking statements indicating that policy responses will be shaped by the conflict's duration and its impact on oil supply and prices [1].
CONCLUSION
The US Treasury is closely monitoring the Iran conflict's effect on oil supply and prices, with Secretary Bessent highlighting a significant supply deficit and the potential for price spikes. Market participants should expect continued volatility, as any US intervention will depend on how the conflict unfolds.