Wright: Energy market impact of Iran war will be temporary

According to US Energy Secretary Chris Wright, the consequences of the conflict between the US, Israel and Iran for energy markets will be temporary and represent a ‘small price’ for the United States’ military objectives. He said this in an interview with Fox News.

The US and Israeli attacks on Iran and Tehran’s subsequent response have significantly increased tensions in the region and paralysed shipping through the Strait of Hormuz. The strategic corridor is key to global oil and gas supplies. Traffic restrictions have pushed up energy prices, with oil prices in Asia rising on Thursday amid concerns about a prolonged closure of the strait.

‘The world is simply extremely well supplied, we have enough oil around the world and US production is at record levels. So we will manage, it will be a minor obstacle,’ Wright emphasized.

US President Donald Trump also promised that the US would provide insurance and naval escorts for ships exporting energy from the region to mitigate rising costs. According to Wright, the US Navy could soon begin escorting oil tankers through the Strait of Hormuz, which under normal circumstances carries about one-fifth of global oil consumption.

The minister admitted that the conflict could cause a short-term rise in petrol prices, but he believes the increase would be an acceptable price to pay for weakening the Iranian regime, which Washington accuses of developing nuclear weapons and attacking US interests. Iran denies accusations that it is developing weapons of mass destruction.

(reuters, max)