Bessent Sees Oil Prices Plummeting to $40/Barrel After Iran Conflict

U.S. Treasury Secretary Scott Bessent warned of a significant decline in oil prices once the Iran conflict is over, predicting they could drop as low as $40 per barrel.

In an interview with Steve Bannon, Bessent stated that the U.S. will be 'very much oversupplied' in the oil market after the conflict, leading to a decrease in prices.

Brent crude was trading above $95 a barrel on Friday, and West Texas Intermediate at about $91, following military strikes between the U.S. and Iran earlier in the week.

The rise in energy prices has added to concerns about inflation, boosting yields on benchmark bonds around the world. Ten-year U.S. rates have hit their highest since 2023.