Washington, May 29: US Treasury Secretary Scott Basent expressed confidence that global oil prices could see a significant decline as shipping barriers in the Gulf region diminish. He noted that despite ongoing tensions in the Strait of Hormuz, the energy market currently has adequate supply.
During a White House briefing, Basent stated that the market has already shown resilience, and fears regarding a prolonged energy crisis may be overstated.
He informed reporters, “Approximately 2,000 ships are waiting to exit the Gulf, and I believe that after this situation, the oil market will remain well-supplied, leading to a rapid decrease in prices.”
This statement comes at a time when governments and the energy market are closely monitoring the conditions in the Strait of Hormuz, one of the world’s most critical maritime routes, through which a significant portion of global oil supply passes daily.
Basent mentioned that global oil prices have already softened in recent weeks, even amidst geopolitical uncertainties.
He added, “What we have seen is that oil prices have dropped by about 10 percent in May.” He further noted that additional supply from major producing countries could stabilize the market. Referring to recent discussions with energy-producing nations, Basent expressed hope that once the current barriers are lifted, the market will remain sufficiently supplied.
When asked about fuel prices, he stated, “I expect that gasoline prices will also decrease after this.”
The Treasury Secretary also highlighted that the increasing energy production capacity in the US has strengthened the economy against external shocks.
He remarked, “Thanks to President Trump’s energy dominance and deregulatory agenda, we are more resilient to fluctuations in energy prices. The US is now the world’s largest energy exporter. We have never exported or produced this much energy before.”
Basent linked energy stability to the administration’s broader economic outlook, asserting that despite inflation concerns, economic growth remains robust. He mentioned that if the energy market stabilizes, inflationary pressures are expected to ease.
When questioned about the potential long-term supply issues if the Strait of Hormuz were to close, he responded, “As soon as this strait opens, we will see a flood of ships. We will observe how quickly it can be refined and how fast it can reach its destination.”
Basent repeatedly emphasized the importance of free passage through this maritime route, identifying it as a key condition in the ongoing negotiations between the Trump administration and Iran.
He stated, “There should be free movement in the Strait of Hormuz. Navigation at sea must be free and open, as it once was.”
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