US Economy Strong Despite $100 Oil Prices and $40 Trillion Debt

Treasury Secretary Scott Bessent told the House Financial Services Committee that the US economy is strong, citing impressive data points. The S&P 500 has climbed roughly 27% since President Trump's inauguration, and unemployment sits at a healthy 4.1%. Over 64 million tax returns have claimed benefits from recent tax cuts.

However, the administration's economic narrative was put to the test as lawmakers zeroed in on the tension between strong headline numbers and the daily reality of $4.32-per-gallon gasoline. Oil prices have pushed past $100 per barrel, driven in large part by the administration's aggressive economic isolation campaign against Iran.

Bessent acknowledged the inflationary pressures but attributed much of the price volatility to the Iran conflict rather than domestic policy choices. The national debt has crossed the $40 trillion threshold, and the 10-year Treasury yield briefly touched 5%, a level not seen consistently since before the 2008 financial crisis.

The Iran sanctions regime against Iran has pushed Iranian crude largely off the market, leading to supply constraints that have driven oil prices above $100 per barrel. Bessent described this effort as the most comprehensive economic isolation in modern history. The energy price surge is a double-edged sword for Bitcoin miners specifically, with higher electricity costs compressing margins.