Treasury Secretary Bessent cites oversupply and 2,000 ships awaiting Gulf transit as key factors for lower crude prices.
Treasury Secretary Bessent stated oil prices will drop below pre-conflict levels due to strong market supply. Approximately 2,000 ships are waiting to exit the Gulf, easing supply concerns.
Prior to the conflict, oil prices had surged amid fears of disrupted flows through the Strait of Hormuz. Bessent’s remarks follow assurances from Oman that the strait will remain open, reducing geopolitical risk premiums.
President Trump reiterated the Strait’s importance, stating no negotiations would proceed until it is fully reopened.