Bessent Sees Oil Crash to $40 as Iran Conflict Ends

Treasury Secretary Scott Bessent expects oil prices to plummet once the Iran conflict ends. He foresees crude dropping to as low as $40 a barrel due to oversupply in the market.

Brent crude was trading at around $95 a barrel on Friday, with West Texas Intermediate at about $91. The rise in energy prices has added to inflation concerns and boosted yields on benchmark bonds worldwide.

Bessent pointed out that interest rates have shown their highest correlation with oil prices, and he believes the Iran conflict's end will lead to lower interest rates and headline inflation.