Oil prices could fall quickly despite Hormuz tensions, says US Treasury Secretary

US Treasury Secretary Scott Bessent expressed confidence that global oil prices could decline rapidly once shipping disruptions in the Gulf ease arguing that energy markets remain well supplied despite tensions surrounding the Strait of HormuzSpeaking at a White House briefing Bessent said the market had already shown resilience and suggested that fears of a prolonged energy shock may be overstatedThere are almost 2000 ships waiting to come out of the Gulf and I think the oil market is going to be very well supplied on the other side of this and that we could see prices come down very quickly Bessent told reportersThe comments come as governments and energy markets closely monitor developments around the Strait of Hormuz one of the worlds most important maritime chokepoints through which a significant portion of global oil supplies passes every dayBessent said oil prices had already softened in recent weeks despite the geopolitical uncertaintyWhat weve seen is actually oil prices are down about 10 per cent in May he said adding that additional supplies from major producers could help stabilise markets once normal shipping resumesReferring to recent discussions with energyproducing nations Bessent said he expected the market to remain adequately supplied after the current disruption passesI would expect on the other side of this that gasoline prices will follow he said when asked about the outlook for fuel costsThe Treasury Secretary also highlighted the United States growing energy production arguing that it has made the American economy more resilient to external shocksWe are more resilient to energy price fluctuations due to President Trumps energy dominance and deregulatory agenda Bessent saidThe United States is now the worlds largest energy exporter The United States has never exported so much energy or produced so much energyBessent linked the administrations broader economic outlook to energy stability noting that economic growth has remained strong despite concerns about inflation and global uncertaintyHe said the administration expected inflationary pressures to moderate if energy markets continue to stabiliseAsked whether the closure of the Strait of Hormuz could create longerterm supply problems Bessent suggested that the current disruption may eventually lead to a surge of shipments once transit resumesAs the strait opens up were going to see this burst of ships come out he said We may actually see how quickly can it be refined how quickly can it get to its destinationBessent repeatedly stressed the importance of maintaining free navigation through the waterway describing it as one of the key conditions sought by the Trump administration in its ongoing discussions with IranThe Strait of Hormuz has to free transit Navigation of the seas has to be free and open as it was before he saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever