Bessent Sees Oil Prices Plummeting, Yen Strengthening After Iran Tensions Ease

US Treasury Secretary Scott Bessent recently shared his views on global oil prices and the yen's performance in the market. According to him, once tensions with Iran ease, oil prices will decline. He believes this is because policymakers traditionally do not raise rates in response to supply shocks.

In addition to oil prices, Bessent also expects the yen to strengthen as Japan's government and the Bank of Japan respond to market conditions. The dollar-yen exchange rate was trading around 160 yen on August 31, with markets focused on the possibility of intervention by Japanese authorities.

Bessent described core inflation as 'very benign' and noted that the US bond market is performing well, with the 30-year yield having moved lower.