Trump holds leverage over Iran thanks to low oil prices, Energy Secretary says

Low oil prices are giving President Donald Trump more influence over Iran, U.S. Energy Secretary Chris Wright said Friday as the two foes teeter on the brink of another conflict.

“The world is very well supplied with oil right now, and I think that gives President Trump more leverage in his geopolitical actions to not worry about the crazy rise in oil prices,” Wright said in an interview with CNBC when asked about the risk of supply disruptions due to tensions with Iran.

The oil market is closing in on tensions in the Middle East for any signs that crude oil supplies could be disrupted.

US crude oil Oil closed up 26 cents, or 0.4%, at $63.55 a barrel on Friday. Prices are up more than 10% since the beginning of the year, following a 20% loss in 2025. Oil market analysts generally expect a surplus this year after OPEC+ increases production and US production remains strong.

Trump deployed the USS Abraham Lincoln aircraft carrier strike group to the Middle East to threaten military action if Iran does not negotiate over its nuclear program. The president threatened Iran with attacks during a mass uprising against the regime in January, but ultimately refrained.

US and Iranian diplomats held talks in Muscat, Oman, early Friday on the Islamic Republic’s nuclear program. Iranian Foreign Minister Abbas Araghchi said: state media He said the talks were “a good start”.

Iran is a member of OPEC and produces more than 3 million barrels of oil per day.

Wright expects production in Venezuela to increase by several hundred thousand barrels per day this year after the United States captured former President Nicolas Maduro in early January. The US has taken control of Venezuela’s oil sales and President Trump is pressuring US companies to rebuild the energy sector.

“This will account for a significant percentage of global demand growth this year,” Wright said about the increase in production in the South American country. “Venezuela will be another useful stabilizer of energy markets.”