Treasury Secretary Scott Bessent confirmed the policy during an interview Monday on Squawk Box, explaining that the Trump administration is prioritizing global energy stability while military tensions continue to escalate in the region.
“The Iranian ships have been getting out already, and we’ve let that happen to supply the rest of the world,” Bessent told CNBC’s Brian Sullivan.
The comments reveal the delicate balance the U.S. is attempting to maintain. Washington is confronting Iran militarily while simultaneously trying to avoid a global oil shock that could damage the world economy.
Strait of Hormuz Remains the World’s Most Critical Oil Chokepoint
The Strait of Hormuz is widely considered the most important oil transit route on Earth.
Before the latest hostilities began, roughly 20 percent of the world’s oil supply passed through the narrow waterway connecting the Persian Gulf to global markets. That includes exports from major producers such as Saudi Arabia, Iraq, Kuwait, and the United Arab Emirates.
When tensions spike in the region, energy markets react immediately. Any disruption to tanker traffic through the strait can quickly trigger major price swings across global crude markets.
Since the start of the latest conflict between Iran and Israel, tanker traffic through the corridor has fallen sharply as insurance costs soared and shipping companies grew wary of attacks on commercial vessels.
Yet Iranian exports have continued.
According to industry estimates, Iran has still managed to ship roughly 1.5 million barrels of oil per day through the strait despite the heavy presence of U.S. naval forces and the heightened security risk.
Tanker Traffic Expected to Rebound
The Trump administration believes tanker traffic will gradually increase before the United States and allied naval forces begin escorting commercial ships through the strait.
Bessent suggested that Iranian authorities themselves may be allowing certain shipments to leave in order to avoid completely shutting down the global oil market.
“We think that there will be a natural opening that the Iranians are letting out, and for now we’re fine with that. We want the world to be well supplied,” Bessent said.
Several shipments appear to have already moved through the corridor in recent days.
Officials in India confirmed that a tanker carrying liquefied petroleum gas arrived Sunday, with another shipment expected shortly. Indian authorities are also waiting for confirmation that 22 additional vessels carrying crude oil, liquefied petroleum gas, and liquefied natural gas will be permitted to sail through the strait.
These shipments are particularly important for Asian economies, many of which rely heavily on Middle Eastern energy supplies.
Oil Prices Surge as War Disrupts Supply
The geopolitical crisis has already triggered a dramatic response in global energy markets.
Oil prices have surged roughly 40 percent since the conflict escalated two weeks ago, according to market data. The price of Brent crude, the international benchmark, has climbed to around $102 per barrel, while U.S. crude is trading near $95 per barrel.
Analysts say the price spike reflects growing fears that the conflict could evolve into a prolonged disruption of energy supply.
According to the International Energy Agency, the war has triggered one of the most significant oil supply disruptions ever recorded.
The agency estimates global supplies could drop by as much as 8 million barrels per day this month if shipping through the Strait of Hormuz remains constrained.
That figure represents a massive shock to global energy markets. For comparison, the oil demand collapse during the early months of the COVID pandemic temporarily removed about 20 million barrels per day from global demand.
U.S. Pressuring Allies to Help Protect Tankers
At the same time the U.S. is allowing some Iranian oil shipments to continue, President Donald Trump is also urging international partners to help secure the waterway.
Countries that rely heavily on oil passing through the strait include China, Japan, South Korea, India, and much of Europe. Trump has called on those nations to contribute naval resources to help protect commercial shipping.
The logic behind the request is straightforward. If the Strait of Hormuz becomes unsafe for shipping, the economic consequences will not be limited to the Middle East.
Energy costs would rise across the entire global economy, potentially fueling inflation, disrupting manufacturing, and weakening economic growth.
Markets Speculate About Possible Government Intervention
The surge in oil prices has also sparked speculation in financial markets that the U.S. government could intervene to stabilize prices.
Rumors circulated that Washington might take action in oil futures markets to prevent excessive volatility.
Bessent pushed back strongly against those claims.
“We haven’t done that,” the Treasury secretary said.
He also noted that it remains unclear what legal authority the U.S. government would even have to intervene directly in oil futures trading.
Energy markets are typically influenced indirectly through tools such as strategic petroleum reserve releases, diplomatic pressure on producers, or adjustments to sanctions policy.
Why Investors Should Pay Attention
The developments in the Strait of Hormuz carry enormous implications for global investors.
Energy markets often serve as a leading indicator for broader economic conditions. Rising oil prices can increase transportation costs, raise consumer prices, and squeeze corporate margins.
Several sectors tend to react quickly to sustained energy price spikes.
Energy producers often benefit from higher crude prices. Airlines, transportation companies, and many manufacturing businesses face rising operating costs.
For investors, the key variable is whether the disruption proves temporary or evolves into a longer-term geopolitical standoff.
If tanker traffic normalizes and exports resume, oil prices could retreat significantly. But if the conflict spreads or shipping becomes more dangerous, the world could face a prolonged energy shock.
Bessent expressed confidence that prices will ultimately move lower once the conflict subsides.
The Treasury secretary said oil should fall “much lower” than $80 per barrel after the war ends.
Exactly when that might happen remains uncertain.
“I do not know when the war will end,” Bessent said, “but the world will be safer and we will be better supplied.”
For now, global markets remain tightly focused on the narrow stretch of water that moves a fifth of the planet’s oil supply.
Few places on Earth carry that much economic weight.
About Author
