U.S. Treasury Secretary Scott Bessent stated that, despite continuing regional tensions, the U.S. is permitting Iranian oil tankers to transit the Strait of Hormuz in an endeavour to preserve stability in global energy supply.
According to Bessent, who spoke with CBS News, fuel shipments are slowly getting back on track via the important maritime route. This includes ships from China, Iran, and India. Free movement of tankers, he said, is to guarantee a sufficient supply of oil to markets around the world, especially for big importers like India, which depends mostly on Gulf crude.
These remarks are made at a time when oil prices have risen sharply, with WTI Crude Oil reaching close to $100/barrel, all because of worries about potential delays at a world-renowned maritime choke point.
Washington has also granted a 30-day waiver to enable 130 million barrels (or more) of Russian oil supplies that are currently at sea to reach markets, relieving supply tensions. According to Bessent, compared to a sudden jump in oil prices, keeping them constant helps limit Moscow’s revenues.
Efforts like Saudi Arabia’s and the UAE’s redirected exports and coordinated releases from strategic petroleum reserves throughout the world are helping to keep global supply shortages manageable, he said.
Consistent shipping via the Strait of Hormuz is vital to the energy market because it carries approximately 20% of the world’s oil and gas cargoes. Particularly vulnerable are the Asian economies that rely on energy supplies from the Gulf, such as China and India.
