Oil surge eases after Bessent pledges support for oil trade during Iran war
Oil prices fell on Wednesday for the first time since the United States launched its war against Iran after Treasury Secretary Scott Bessent said the Trump administration would provide support to oil tankers passing through the Persian Gulf and announce more measures in the coming days.
US crude oil It was down 72 cents, or 0.97%, to $73.84 a barrel as of ET. Global benchmark Brent It fell 72 cents, or 0.88%, to $80.68.
WTI crude rose to almost $78 a barrel, its highest level this week since the United States and Israel launched a massive wave of airstrikes against OPEC member Iran over the weekend. Iran has responded with missile and drone strikes against targets in the Middle East, including energy infrastructure.
US crude oil rose 6% on Monday and 5% on Tuesday.
The oil market calmed after President Donald Trump said Tuesday that the United States would insure tankers through the International Development Finance Corporation. Trump also promised naval escort support for oil traffic in the Persian Gulf if necessary.
Oil fell after Bessent told CNBC on Wednesday that the White House would make a series of announcements to support oil trade in the Gulf.
“We have a number of announcements we’re going to make,” Bessent said on CNBC’s “Squawk Box.” “We started yesterday with DFC’s announcement that it will provide insurance for both crude oil carriers and cargo ships operating around the Gulf.”
Tanker traffic in the Strait of Hormuz has come to a halt as shipowners fear they could become targets of Iranian retaliatory attacks. The Bosphorus is the most important transit point in the world in terms of oil trade. Approximately 20% of world oil consumption is exported through the Bosphorus.
