Treasury Secretary Scott Bessent has predicted that oil prices could fall as low as $40 to $50 per barrel after the conclusion of the conflict involving Iran, attributing this potential drop to a substantial increase in supply that is currently constrained.
During an interview on "My View with Lara Trump," Bessent described the American economy as "very strong" and indicated it is accelerating, noting what he termed a "productivity burst." He asserted that underlying economic fundamentals remain robust, with strong job and wage growth. Bessent suggested that wage increases will persist, bolstered by a "manufacturing renaissance" and "construction renaissance." He anticipates that these gains, combined with the end of the current conflict, will translate into real wage increases for Americans.
Bessent also commented on the global energy market, referring to the United States as an "energy superpower." He suggested that the current "energy supply shock" is temporary. He further predicted that the Strait of Hormuz may become less critical for global oil trade as nations in the Gulf region develop alternative pipeline routes. This, he explained, would allow them to bypass the Strait, thereby diminishing Iran's capacity to disrupt oil flows.
"This is the greatest economic isolation operation in the history of the world. We are going to asphyxiate this regime," Bessent stated, referring to the impact of sanctions and blockade measures against Iran. He described this combination as "one of the most powerful one-two punches in the history of economic isolation." Bessent expressed optimism that the world will emerge from the conflict with Iran in a safer state, with Iran unable to acquire nuclear weapons, and that the global situation is in an "lift-off phase."