U.S. Treasury Secretary Scott Bessent said that after the war with Iran ends, oil prices could fall to $40–50 per barrel due to an oversupply on the market. Bloomberg reports, UNN writes.
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We will get to the other side of this Iranian conflict, and I expect the price of oil to decline
According to him, a significant surplus of oil could emerge on the market after the war ends.
We could see the price of oil at $50, perhaps $40, simply because so much of it is coming onto the market
The war is currently keeping oil near $95
At the time of Bessent’s statement, Brent was trading above $95 per barrel, while U.S. WTI was at around $91. The latest strikes between the United States and Iran once again pushed energy prices higher.
Bessent also believes that the end of the war and cheaper oil will contribute to lower inflation and interest rates in the United States.
At the same time, he did not specify a timeline for the end of the conflict. According to Bloomberg, this week one of the Republicans on the House Armed Services Committee described the military situation as "stalled."