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The price of oil shot up amid the Trump administration’s targeting of Iran due to a “fear premium in the marketplace,” but Iran-forced oil inflation is “finally going to come to an end,” according to Energy Secretary Chris Wright, when vessels resume normal movement.
“We’re not too long away, I think, before you will see more regular resumption of ship traffic through the Straits of Hormuz,” Wright told CNN’s “State of the Union” on Sunday. “Yes, we’re nowhere near normal traffic right now. And that’ll take some time. But, again, worst case, that’s a few weeks. That’s not months.”
“The world is very well supplied with oil right now,” Wright said. “The United States is a net oil exporter. We’re a net natural gas exporter. We are suffering high prices, not in natural gas, but in oil, because it’s a globally connected market.
Oil prices surged to their highest levels since mid-2022 as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market due to the expanding U.S.-Israeli war with Iran. Nevertheless, Wright remains optimistic that this is just a temporary setback.
Energy Secretary Chris Wright stands behind President Donald Trump’s bold and decisive action on Iran, saying the Iran-force oil inflation will ‘end’ soon. (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.
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“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.”
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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.”
Reuters contributed to this report.
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