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US Energy Chief Warns Oil Prices Could Peak in Coming Weeks
(MENAFN) US Energy Secretary Chris Wright said on Monday that oil prices may reach their highest point in the coming weeks, as ongoing disruptions to shipping through the Strait of Hormuz continue to push energy costs upward.
Speaking at the Semafor World Economy conference in Washington, DC, he said, “We’re going to see energy prices high – and maybe even rising – until we get meaningful ship traffic through the Strait of Hormuz.”
He added, “That’ll probably hit the peak oil price at that time. That’s probably sometime in the next few weeks,” according to his remarks.
Wright also noted that price pressures would likely ease only after the conflict involving the US and Iran ends and energy flows normalize, though he warned the recovery would not be immediate. “Once the conflict ends and energy starts flowing again, you’ll start to see downward pressure. But it will take some time,” he said.
He further stated that expectations of a quick decline in prices are unrealistic, adding, “By the summer is an aggressive timeframe.”
Wright also said, “The president knew going into this that if you disrupt the flow of energy in the short term, you’re going to push up energy prices,” referring to the administration’s awareness of potential market impacts.
Oil markets have surged since the US-Israeli war with Iran began on Feb. 28, with shipping through the Strait of Hormuz heavily affected. In response, US naval actions have reportedly increased pressure on Iranian maritime routes after talks in Islamabad aimed at ending the conflict failed to produce a breakthrough, despite a short-lived ceasefire mediated by Pakistan.
Speaking at the Semafor World Economy conference in Washington, DC, he said, “We’re going to see energy prices high – and maybe even rising – until we get meaningful ship traffic through the Strait of Hormuz.”
He added, “That’ll probably hit the peak oil price at that time. That’s probably sometime in the next few weeks,” according to his remarks.
Wright also noted that price pressures would likely ease only after the conflict involving the US and Iran ends and energy flows normalize, though he warned the recovery would not be immediate. “Once the conflict ends and energy starts flowing again, you’ll start to see downward pressure. But it will take some time,” he said.
He further stated that expectations of a quick decline in prices are unrealistic, adding, “By the summer is an aggressive timeframe.”
Wright also said, “The president knew going into this that if you disrupt the flow of energy in the short term, you’re going to push up energy prices,” referring to the administration’s awareness of potential market impacts.
Oil markets have surged since the US-Israeli war with Iran began on Feb. 28, with shipping through the Strait of Hormuz heavily affected. In response, US naval actions have reportedly increased pressure on Iranian maritime routes after talks in Islamabad aimed at ending the conflict failed to produce a breakthrough, despite a short-lived ceasefire mediated by Pakistan.
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