Treasury Secretary Scott Bessent defended the relaxation of sanctions on Iranian oil and the U.S. military strikes on Tehran’s infrastructure
Last week, the Treasury Department relaxed certain sanctions on Iran, thereby permitting the sale of Iranian oil that was previously stranded at sea. On Sunday, Bessent, on “Meet the Press” on NBC News, explained that this move was designed to tackle the escalating energy costs.
He also announced that this decision is expected to introduce approximately 140 million barrels of oil into the global markets, thereby relieving temporary supply pressures instigated by Iran.
Despite the ongoing conflict, the decision to economically empower Iran was questioned by some experts. To this, Bessent responded that the oil was always meant to be sold to China at a discounted rate. He referred to the decision as “jujitsuing the Iranians” by turning their own oil against them.
When questioned about the potential impact on consumer prices, Bessent refrained from providing a specific timeline but said, “50 days of temporary elevated prices, prices will come off on the other side for 50 years of not having an Iranian regime with a nuclear weapon.”
Iran Conflict Sparks Full-Spectrum Shock
The Iran conflict, now 21 days old, has led to unprecedented changes across all major asset classes, including commodities, equities, and bonds. This systemic repricing, compressed into a matter of weeks, is not just an oil story but a full-spectrum energy shock.
At 5:15 am ET, Brent crude oil was trading 1.97% higher at $108.51 per barrel. Meanwhile, the average gas prices climbed to $3.956 and diesel to $5.81 per gallon, as per AAA.
Meanwhile, the standoff with Iran is now intertwined with a tactical question: whether Washington will transition from air and sea pressure to a physical hold on Iran’s key export node. This comes after Donald Trump‘s warning to Iran’s leaders to reopen the Strait of Hormuz or face U.S. strikes on power plants.
On this, Bessent called the campaign on Iran successful and said that Trump “is leaving all options on the table.”
The Treasury Secretary stated that escalation in military actions is sometimes a prerequisite for de-escalation. He stood by the Trump administration’s stance, asserting that such language is the only one “the Iranians understand.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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