On Thursday, Treasury Secretary Scott Bessent faced criticism after saying he didn’t “really understand” a spike in oil prices, as Rep. Ro Khanna (D-Calif.) blamed President Donald Trump’s war with Iran for driving energy costs higher.
Scott Bessent Questions Oil Price Spike
Bessent made the remarks while discussing financial markets and the Treasury Department’s efforts to bring markets back into equilibrium.
“Anything that happens within a 24-hour period is noise,” Bessent told reporters, adding that he was confident bond yields would continue declining. “We’ve got a spike in oil prices today that I don’t really understand,” he said.
He was citing rising oil prices while also discussing the impact of the Treasury Department’s surprise bond buyback announcement on Wednesday.
Meanwhile, Brent crude futures rose 2.4% Thursday to close at $93.78 per barrel, while West Texas Intermediate futures for October delivery climbed 2.7% to $86.64.
Bessent argued that the administration’s economic measures against Iran could ultimately push oil prices lower, saying, “Our announcement is for economic action and I think that the economic action will mean that oil prices will come down sooner.”
Earlier this week, President Trump also warned that countries offering “any type of lifeline” to Iran’s regime would face “tremendous economic consequences.”
Ro Khanna Blames Trump’s Iran War
Khanna reacted to Bessent saying he did not “really understand” the oil price spike in a post on X, writing, “I understand why, Scott. Your boss started a dumb war with no plan, and Americans are paying for it.”
Rep. Ted Lieu (D-Calif.) also weighed in, saying oil prices were high because Trump had engaged in an action that “starts with W and ends in R.”
Investor and hedge fund manager Spencer Hakimian similarly mocked Bessent, writing, “The Strait of America is closed. Hope that helps.”
Oil Prices Surge Amid Iran Tensions
The surge comes as the conflict with Iran continues to threaten energy supplies through the Strait of Hormuz, a critical waterway through which about 20% of the world’s oil and liquefied natural gas normally transit.
In an interview with CNBC, Bessent said the U.S. would pursue “the toughest sanctions in history” against Iran and pledged to explain the administration’s economic strategy at a press conference Monday.
The U.S. and Israel launched strikes on Iran in February, saying they aimed to prevent Tehran from developing nuclear weapons, a claim Iran has repeatedly denied.
Iran retaliated by targeting Israel, U.S. bases and Gulf Arab allies. Two ceasefires, reached in April and June, have since been repeatedly broken, while efforts to revive negotiations have stalled.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Maxim Elramsisy
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