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U.S. Treasury Secretary Scott Bessent has emphasized that ample global oil supply is helping to contain West Texas Intermediate (WTI) crude prices below the $100 per barrel threshold amid ongoing geopolitical tensions, including the U.S.-Israeli conflict with Iran. In recent statements, Bessent highlighted that crude markets remain "very well supplied," with hundreds of millions of barrels available on the water outside the Gulf region, reducing the impact of disruptions in the Strait of Hormuz.
Bessent pointed to measures like temporarily easing sanctions on Russian oil in transit and potentially unsanctioning Iranian crude already at sea—estimated at 130-140 million barrels—to boost immediate physical supply. These steps aim to stabilize energy markets without direct intervention in futures trading, which he ruled out, stating Treasury lacks authority for such actions and focuses instead on physical availability.
Despite pressures from the Iran war, which has closed key routes and caused temporary spikes, Bessent argued broader dynamics—including redirected shipments from producers like Saudi Arabia and the UAE, plus U.S. production highs—create a supply surplus in many areas. He projected prices could fall "far below" $80 per barrel in coming months once additional supplies, including potential further Strategic Petroleum Reserve releases, enter the market.
This approach aligns with the Trump administration's goal of keeping energy costs low for consumers while avoiding financial market meddling. As of mid-March 2026, WTI has hovered around $96-99 per barrel in volatile sessions, reflecting these supply-focused efforts amid uncertainty. #US #WToken #crypto