US Energy Secretary Plays Down Price Shock From Iran Conflict
(Bloomberg) -- US President Donald Trump’s energy chief downplayed the impact the US-Israeli war with Iran is having on energy markets, saying prices haven’t risen enough to trigger “meaningful demand destruction.”
“Markets do what markets do,” Energy Secretary Chris Wright said during remarks at the CERAWeek by S&P Global conference in Houston on Monday. “Prices went up to send signals to everyone that can produce more.”
Wright was responding to a question about the impact of the effective closure of the Strait of Hormuz, a vital waterway for substantial portions of global oil and gas shipments. The global Brent benchmark has surged since the conflict erupted on Feb. 28, at times approaching $120 a barrel.
Wright said the near-total closure of Hormuz will be temporary and noted the Trump administration has taken steps such a lifting some sanctions to boost available crude supplies.
“This is a conflict that we simply couldn’t kick down the road one more administration,” Wright said.
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