Treasury Secretary Projects Lower US Gas Prices After Iran War Resolution
Speaking during the hearing, Bessent described current oil market conditions as what is known in the energy sector as “very steep backwardation,” explaining that future oil prices are significantly lower than present-day levels, according to reports.
He said he expects fuel costs to decline as hostilities ease, potentially returning to previous levels “or perhaps lower,” as reported.
The comments came amid questioning from lawmakers regarding the administration’s approach to sanctions on Iranian and Russian oil exports.
Senator Chris Coons raised concerns that Iran has generated an estimated $14 billion in revenue since the start of the conflict in late February, while Russia is reportedly earning an additional $150 million per day, which he said supports its military operations in Ukraine, according to reports.
Bessent rejected the $14 billion estimate, calling it a “myth,” and strongly disagreed with the argument that easing restrictions had been counterproductive. He said the policy helped prevent a sharp rise in global oil prices, warning that costs could have reached as high as $150 per barrel without intervention.
He added that the administration’s approach was intended to stabilize global energy markets and ensure sufficient supply, stating that both US consumers and international partners, particularly in Asia, depend on stable fuel availability. According to reports, he said the policy helped maintain global supply levels of roughly 250 million barrels of oil.
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