United States Treasury Secretary Scott Bessent stated in an interview with Fox Business Network that the US may unsanction Iranian oil currently on water in the coming days, according to Reuters [1]. Bessent clarified that the US is not attacking Iran's energy infrastructure and has allowed Iranian oil to continue out of the Gulf [1]. He emphasized that there is 'plenty more the US can do on oil supply,' including the possibility of another Strategic Petroleum Reserve (SPR) release to help keep oil prices down [1]. Bessent also noted that the US Treasury is not intervening in futures markets but is instead intervening by creating excess supply with oil that is on the water [1].
Bessent further commented that the US is not planning a financial market intervention and expects Japan to be interested in securing oil supplies from the Gulf, citing President Trump's excellent relationship with the Japanese leader [1]. He believes Japan will supply the market with oil reserves [1]. Additionally, Bessent expressed optimism about US economic growth, projecting it could be above 3% for 2026 [1]. He mentioned that results of tariff investigations are expected in July, with the expectation that the tariff regime would remain unchanged under new authority [1].
The immediate market reaction to Bessent's comments saw crude oil prices edge slightly lower. At the time of reporting, West Texas Intermediate (WTI) was trading near $95.80 per barrel, down about 3.2% on the day [1].
CONCLUSION
The US Treasury's indication of potentially unsanctioning Iranian oil and possible SPR releases contributed to a decline in crude oil prices. Market participants reacted to the prospect of increased oil supply, with WTI dropping 3.2%. Forward-looking statements suggest stable tariff regimes and optimism for US economic growth.