Treasury Secretary Besent stated that the temporary rise in oil prices is a short-term disruption that will result in a "massive benefit" to the U.S. ...

Treasury Secretary Scott Bessent emphasized that the recent surge in oil prices, driven by escalating tensions in the Middle East, represents a short-term disruption rather than a long-term threat to energy markets. Speaking on CNBC's Squawk Box, Bessent stated that the U.S. government is prepared to implement a series of measures to stabilize oil trade through the Persian Gulf, including political risk insurance for tankers and potential naval support for safe passage through the Strait of Hormuz. These steps aim to mitigate fears of supply disruptions, which have pushed U.S. crude prices to $74.62 per barrel— a 11% increase this week and a 30% rise in 2026.

Bessent argued that global oil markets remain well-supplied despite the volatility, citing strategic petroleum reserves and robust production from major exporters. He contrasted the current situation with the early stages of the Ukraine war, noting that the U.S. now holds a stronger position due to record domestic oil and natural gas output and its growing role as a crude and LNG exporter. While oil prices have risen on geopolitical uncertainty, Bessent suggested the temporary spike could ultimately benefit the U.S. economy by incentivizing domestic energy production and reinforcing global supply resilience.

The Treasury Secretary also highlighted ongoing coordination with the International Energy Agency and energy-producing nations to address potential risks. Meanwhile, President Donald Trump announced that the U.S. Development Finance Corporation would provide affordable insurance for Gulf maritime trade, further signaling government support for uninterrupted energy flows. Analysts caution that prolonged disruptions could push prices above $100 per barrel, but Bessent remains confident in the market's ability to adapt to the current crisis.