Treasury Secretary Scott Bessent stated on Wednesday that Ukraine's actions are responsible for the current high oil prices. He specifically cited Ukraine's decision to attack Russian energy assets as a primary driver of upward price pressure on a global basis.
Bessent's remarks come as the Trump administration seeks to lower gasoline prices ahead of the November elections. The average national gasoline price is currently $4.12 per gallon, a nearly $1 increase from the previous year, according to AAA data. Historically, rising gas prices around Memorial Day have been seen as an unfavorable sign for the incumbent party in upcoming elections.
The Trump administration has pursued various strategies to mitigate the cost of fuel. President Trump recently met with oil and gas retailers and refiners. Additionally, the White House announced an oil deal with Venezuela, involving an agreement to purchase 20% of output from 17 offshore oil fields. The administration is also working to encourage global shipping firms to transit the Strait of Hormuz, with U.S. assistance, despite threats from Iran.
Bessent also noted that prices reflect an "energy shock" associated with the conflicts in Ukraine and Iran, expressing belief that prices will decline once the conflict in Iran concludes.