US Treasury Secretary Benson said on Monday (March 16th) that the US currently allows ships from Iran, India, and China to pass through the Strait of Hormuz to ensure an adequate supply of energy in the global market.
In an interview with CNBC, Benson noted an increasing number of fuel ships passing through the Strait of Hormuz. “Iranian ships have departed, and we allow this to happen to supply fuel to other regions around the globe.”
He also mentioned that oil tankers supplying India have already passed through the Strait of Hormuz. The US believes that some Chinese ships are also leaving the Persian Gulf.
The Secretary of the Treasury stated that the Trump administration expects the traffic of oil tankers through the Strait of Hormuz to gradually increase before the US military and its allied forces begin escorting merchant ships. He stated that the US anticipates a natural opening where Iran will allow certain ships to pass, “We currently accept this situation. We hope for ample global oil supply.”
Due to Iranian attacks on commercial ships in the Persian Gulf, the volume of oil transported by oil tankers through the Strait of Hormuz has sharply declined. However, Iran itself continues to export large amounts of oil through this narrow passage. Iran exports approximately 1.5 million barrels of oil per day.
Since the joint military operations launched by the US and Israel against Iran three weeks ago, oil prices have surged by about 40%. According to the International Energy Agency (IEA), this conflict has triggered the most severe oil supply disruption in history, with a significant decrease in oil exports through the Strait of Hormuz.
When asked about measures the Trump administration might take aside from releasing oil reserves to alleviate the impact of rising oil prices and the war, Benson stated, “It will depend on the duration of the conflict.”
On Monday, the international benchmark Brent crude oil price hovered around $102 per barrel, while the US crude oil price traded at around $95 per barrel.
Benson expressed that after the war ends, oil prices should drop to below $80 per barrel. While he does not know when the war will end, he believes that the world will be safer and oil supply will improve after the war concludes.
Benson denied rumors about the government possibly intervening in oil futures trading markets. “We are not doing that,” he said, adding that it is still unclear under what authority the US could take such actions.