Treasury's Bessent Says That Oil Prices Will Come Down After Iran War

Treasury Secretary Scott Bessent said Sunday that energy prices, which have risen amid the U.S.-Israel conflict with Iran, are expected to decline later this year.

Speaking on Fox Business Network’s “Sunday Morning Futures,” Bessent said oil prices could fall once the conflict subsides.

He also said the United States is increasing economic and financial pressure on Iran, suggesting the measures could eventually force concessions from Tehran. Bessent described the effort as a sustained campaign that has intensified in recent months.

His comments followed a pause in U.S.-Israeli airstrikes and reflect the administration’s broader strategy of using sanctions, maritime restrictions and financial enforcement to strain Iran’s economy.

Bessent said U.S. officials believe Iran’s oil sector may soon face operational challenges as storage capacity fills and exports remain limited. He indicated that production cuts or well shutdowns could occur in the near term if inventories continue to rise.

He added that Iran’s oil infrastructure has been weakened by years of sanctions and underinvestment.

Bessent also said vessels departing from the Iranian side of the Strait of Hormuz are being restricted, and that the United States has stepped up efforts to prevent financial flows that could benefit the Islamic Revolutionary Guard Corps.

He noted that revenue from transit fees in the waterway is relatively small compared with Iran’s previous oil income.

Earlier reports have indicated that Iranian officials have already begun reducing production to manage storage constraints.

The remarks came a day after President Donald Trump said Iran’s latest diplomatic proposal would be insufficient to reach an agreement. U.S. officials have maintained that any deal must include an end to Iran’s nuclear program, while Iran continues to deny it is seeking to develop nuclear weapons.