WASHINGTON: US Treasury Secretary Scott Bessant spoke candidly about the Middle East situation in an interview with CNBC, addressing recent disruptions in global oil supply. Bessant noted that the closure of the Strait of Hormuz has caused significant increases in oil prices, though he described the disruptions as temporary. He expressed hope that China could play a role in reopening the vital waterway, given the Chinese economy’s heavy reliance on Gulf oil.
“We are producing oil at record levels and will continue to pump,” Bessant said, emphasizing that US energy production will help stabilize prices and reduce inflation. He added that the current market uncertainty is temporary, and once supply routes return to normal, pressure on prices will ease.
His statements are made against the backdrop of the visit of US President Donald Trump to China along with his delegation, where he had a meeting with Chinese President Xi Jinping and stated his willingness for both countries to be partners instead of being competitors.
The Secretary of the Treasury also forecasted that the price of oil globally might fall significantly within the next few months after resolving temporary issues related to its supply.
The Strait of Hormuz has been blocked since late February due to the ongoing conflict in the region, resulting in shortages of fuel and increased prices of oil, including Brent crude oil.
