The White House sought to calm concerns over rising oil prices, saying the recent surge linked to the conflict involving Iran is likely to be temporary.
US Energy Secretary Chris Wright said the current rise reflects a “fear premium in the marketplace” but indicated the increase may not last long.
The comments come as crude prices rise sharply following strikes on Iranian energy sites and growing concerns about supply disruptions across the Middle East, including shipping through the Strait of Hormuz, a key route for global oil flows.
“We never know exactly the timeframe of this,” Wright said during an appearance on CNN's “State of the Union.” “But in the worst case, this is a weeks, this is not a months thing.” The White House also described the recent rise in fuel prices as a short-term market reaction.
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White House press secretary Karoline Leavitt said in a Sunday appearance on Fox News that the price increase reflects “a short-term disruption” that could benefit consumers over time.
“But ultimately taking out the rogue Iranian regime is going to be a good thing for the oil industry,” Leavitt said. “And those prices are going to come back down just like they have over the course of the past year, because of President Trump's American energy dominance agenda.”
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Oil markets have moved sharply in recent days as attacks linked to the conflict affect energy infrastructure and raise concerns over supply.
West Texas Intermediate futures rose 12.21%, or $9.89, to settle at $90.90 per barrel on Friday. Brent crude increased 8.52%, or $7.28, to close at $92.69 per barrel. For the last week, WTI crude rose 35.63%, the largest weekly gain since the futures contract began trading in 1983. Brent crude gained about 28%, its largest weekly rise since April 2020.
The price moves were followed by the Israeli strikes on Iranian fuel sites in and around Tehran on Sunday that triggered fires at oil storage facilities and an oil transfer and production centre. The escalation has raised concerns that further disruptions could affect energy supply and global markets.
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