On Monday (May 4), U.S. Treasury Secretary Scott Bessent stated that with the successful guidance of oil tankers through the Strait of Hormuz by the U.S. military, the high oil prices will rapidly decrease in the coming weeks.
The U.S. Central Command confirmed on Monday that two U.S.-flagged commercial vessels successfully passed through the Strait of Hormuz with the support of the U.S. military, marking significant progress in the “Project Freedom” operation. Despite Iranian military forces firing at U.S. warships in an attempt to obstruct, the U.S. military retaliated, destroying multiple Iranian speedboats and ensuring the safe passage of the commercial vessels.
According to data from the American Automobile Association (AAA), the average price of gasoline in the U.S. on Monday was around $4.46 per gallon, higher than approximately $3.17 per gallon during the same period last year.
Facing pressure from the rising oil prices across the country, Bessent expressed in an interview with Fox News: “Help is on the way starting today.”
Bessent pointed out that the current surge in oil prices is only a “short-term fluctuation” and a “temporary anomaly.” He explained that due to the conflict in the Strait of Hormuz, there is currently a daily supply gap of approximately 8 to 10 million barrels in the global oil market. However, as the U.S. military begins guiding the stranded 150 to 200 oil tankers out, the market supply is expected to improve rapidly.
“For each oil tanker passing through the strait carrying about 2 million barrels of crude oil, if four or five tankers can pass smoothly every day, it will improve the supply gap,” said Bessent. “We expect over 150 to 200 stranded oil tankers to be able to sail out. Therefore, I believe the market supply will become very ample.”
He confidently predicted, “After overcoming this challenge, the global market will be filled with oil.”
Supporting this optimistic expectation is not only the “Project Freedom” but also significant changes in the global energy landscape.
Bessent stated that the United Arab Emirates (UAE) has announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and is prepared to increase production, while OPEC as a whole has announced production increase plans. Combined with the U.S. currently being the “world’s top energy superpower,” it will effectively stabilize the market.
In the interview, Bessent described the Iranian navy as “a group of pirates,” emphasizing that the U.S. has control over the waterway.
“Their (Iran’s) navy is in disarray. They are a group of pirates trying to disrupt international maritime freedom through the Strait of Hormuz, and the U.S. is reopening this passage,” he told reporters. “Iranians do not control this strait. We have absolute control over this strait.”
“We have blocked ships entering and leaving Iranian ports. Their economy is collapsing in free fall. Everyone says they can endure pain, but their soldiers will not have high endurance if they cannot get paid,” said Bessent.
In the interview, Bessent also reiterated that regardless of Iran’s agreement, the U.S. will execute the “Project Freedom” to restore the flow of the Strait of Hormuz. In addition to oil, the waterway is also a vital route for transporting global fertilizers, food, and liquefied petroleum gas.
Bessent said, “‘Project Freedom’ is a long-prepared operation, and we will urge the Iranians to let those more than 300 ships leave. They cannot fire upon these ships.”
“We only return fire when fired upon. We are not the provocateur, but if Iran wants to escalate the situation, we will escalate with it,” he said. “These are like a group of random pirates, and the great U.S. military will destroy them.”
Bessent described Iran’s current armed speedboats as the “mosquito navy,” and revealed that these speedboats “are being wiped out in groups, with several already destroyed, possibly reaching double digits.”
On Monday, President Trump, in a phone interview with Fox News reporter Trey Yingst, also stated that if Iran interferes with U.S. military operations, they will be “wiped off the face of the earth.”
Trump believed that Iran has been more flexible in negotiations than before, but if necessary, the U.S. military is prepared to launch new strikes against Iran.