US Treasury Secretary Scott Bessent expects oil prices to fall sharply once the Iran conflict ends, arguing that a surge in supply could leave the global market significantly oversupplied in the medium term.
“Once we get on the other side of the Iran conflict, I expect oil prices to come down.I actually think the oil market could be significantly oversupplied in the medium term, with a potential $40-$50 pullback as new supply comes online,” Bessent said in an interview with Bannon's War Room, hosted by Stephen K. Bannon.
“The conflict in Iran will end, and prices will come down,” he added.
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Bessent's comments come as global energy markets remain under pressure from geopolitical conflicts. Brent crude has climbed to around $97 a barrel, while the average US gasoline price stands at $4.12 a gallon, up nearly $1 from a year ago, according to AAA data.
Earlier, Bessent also attributed part of the recent rise in global oil prices to the war in Ukraine. Speaking to Fox News, he said Ukrainian attacks on Russian energy infrastructure and refined-product facilities were creating “upward price pressure” globally.
“We are going through an energy shock right now due to both the war in Ukraine... and then the conflict in Iran,” Bessent said.
The Treasury Secretary also suggested that the US could take action over oil shipments from Iran to China, saying, “They sent oil toward China. Watch this space for action on that on Tuesday.”
On the future of Iran's political leadership, Bessent said the regime could change from within, while adding that “we will see what happens.”
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Bessent's comments come as the Trump administration faces pressure to contain fuel prices, with the US midterm elections scheduled for November 3.
The Treasury Secretary also defended direct engagement with Russia, saying dialogue was necessary to resolve the Russia-Ukraine conflict. His remarks came after a meeting with Russian Finance Minister Anton Siluanov on the sidelines of the G20 finance ministers' summit.
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