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The cost of oil experienced a significant increase following the Trump administration’s actions against Iran, influenced by a “fear premium” in the market. However, Energy Secretary Chris Wright anticipates that the Iran-driven oil inflation is “about to conclude” as shipping operations return to normal.
Speaking on CNN’s “State of the Union” this past Sunday, Wright expressed optimism, saying, “We are not far from seeing a more regular flow of ship traffic through the Straits of Hormuz. We’re currently not at normal levels, and it will take some time, but the worst-case scenario is just a few weeks, not months.”
Wright emphasized, “The world is currently well-supplied with oil. The United States is a net exporter of both oil and natural gas. While we are experiencing high oil prices, it’s due to the global nature of the market, not a shortage of supply.”
Recently, oil prices have climbed to their highest since mid-2022, fueled by production cuts from major suppliers and concerns about shipping disruptions amid the escalating U.S.-Israeli conflict with Iran. Despite these challenges, Wright remains hopeful that these issues are temporary.
Energy Secretary Chris Wright supports President Donald Trump’s decisive actions regarding Iran, confidently stating that the inflation in oil prices due to Iran will soon be resolved. (Aaron Schwartz/CNP/Bloomberg via Getty Images)
“We’re communicating with our allies abroad. The oil is there,” he added “You’re seeing a little bit of fear premium in the marketplace. But the world is not short of oil today or natural gas.”
Wright maintained that the Trump administration is “all in on lowering energy prices, and I would say quite successfully,” pointing to overall decreases in gas prices.
“Gasoline today is still $1.50 a gallon cheaper than it was in the middle of the Biden administration,” he noted. “But you’re right. We want it back below $3 a gallon. And it will be again before too long.”
Wright stressed again that “this is a weeks, this is not a months thing.”
The secretary emphasized the importance of conducting the military campaign against Iran, despite the current impact on oil prices.
“It is simply unacceptable for the United States, for the Middle East geography and for the world economy to have a terrorist regime with nuclear weapons and a gigantic missile arsenal,” Wright concluded.
“They have raised energy prices for Americans for decades. It’s finally going to come to an end.”
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