Bessent Expects Oil Prices to Fall After Conflict, Market to Stabilize

US Treasury Secretary Scott Bessent said he expects oil prices to decline significantly once the conflict involving the United States, Israel and Iran ends, describing current price levels as a temporary result of tensions in the Middle East.

In an interview with Fox News, Bessent said futures markets also point to a drop in prices in the coming period. He expressed confidence that shipping through the Strait of Hormuz would gradually resume, helping to stabilize global oil supplies. Iran, he added, gains little from attempts to restrict maritime traffic.

Bessent said the United States remains a strong player in global energy markets, supported by record export levels. He noted that further growth is constrained primarily by infrastructure limitations rather than production capacity.

He also addressed monetary policy, saying he was optimistic about future leadership at the Federal Reserve. Bessent said that outgoing Federal Reserve Chair Jerome Powell was acting unlawfully by remaining on the board, but added that “it’s his decision”. He said he was confident about Powell’s potential successor, Kevin Warsh.

(reuters, sab)