403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Treasury Secretary Projects Lower US Gas Prices After Iran War Resolution
(MENAFN) US Treasury Secretary Scott Bessent told a Senate subcommittee on Wednesday that gasoline prices in the United States could fall below pre-conflict levels once the confrontation involving Iran comes to an end.
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.
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.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment