Oil Prices Could Plunge to $40 as Iran Conflict Resolves

Treasury Secretary Scott Bessent is predicting that oil prices will plummet to as low as $40 a barrel once the Iran conflict subsides. This, he believes, will lead to lower bond yields.

The current price of Brent crude stands at over $95 a barrel, its highest level since July, while West Texas Intermediate is around $91. The rise in energy prices has contributed to concerns about inflation and boosted yields on benchmark bonds worldwide.

Bessent emphasized the correlation between oil prices and interest rates, stating that 'the Iran conflict will end, interest rates and the spike in headline inflation will come down.'