Bessent Sees Oil Prices Plummeting to $40 Amidst Iran Conflict Resolution

US Treasury Secretary Scott Bessent forecasted that oil prices could drop to $40 per barrel following resolution of the Iran conflict. In a recent interview, he stated, 'Once we move past this Iran conflict, I anticipate oil prices declining.'

Brent crude exceeded $95 per barrel during Friday trading, approaching levels not seen since July. Bessent suggested that markets might witness crude trading at $50 or potentially $40 due to significant new production capacity entering global markets.

The Treasury Secretary emphasized the strong correlation between oil prices and interest rates, stating, 'When you examine the data, interest rates currently show their strongest correlation ever to oil pricing.'

Bessent believes that Iran conflict resolution and subsequent oil price declines will moderate inflation and bring yields down accordingly. He stated, 'When the Iran conflict concludes, interest rates and the headline inflation spike will decline.'