U.S. Treasury Secretary: "Oil Prices to Plunge After War... Iran May Shut Down Oil Wells Next Week"

U.S.-China Summit Likely to Proceed as Scheduled
Iran's Hormuz Strait Toll Revenue Remains Limited

U.S. Secretary of the Treasury Scott Bessent predicted on May 3 (local time) that oil prices in the United States would plunge and fall below levels seen at the beginning of the year once the war is over.

In an interview with Fox News that day, Secretary Bessent stated, "I have an optimistic outlook that oil prices will be much lower than at any point earlier this year, or in 2020 and 2025, once the war ends." He added, "You can already see that futures markets have priced in lower oil prices for three, six, and nine months out."

APEC Session 1 Scott Bessent, U.S. Secretary of the Treasury. Photo by Yonhap News

According to the American Automobile Association (AAA), the average price of gasoline in the United States on this day was $4.446 per gallon, a 40.2% surge from last year's average of $3.171. During the same period, diesel prices soared by 58.7%, from $3.554 to $5.642 per gallon. The ongoing war has caused a sharp increase in international oil prices, which has been passed on to retail prices.

Secretary Bessent also mentioned Iran's oil storage facilities, saying, "If things continue like this, they will soon have to shut down their oil wells, and I believe that could happen as early as next week."

He further addressed the tolls imposed by Iran on the Strait of Hormuz, stating, "I think their toll revenue amounts to less than $1.3 million (about 1.9 billion won), which is very small compared to their former daily oil revenues."

Additionally, Secretary Bessent indicated that the U.S.-China summit will proceed as scheduled and suggested that the Iran war and energy supply chains will be major topics at the upcoming meeting.

Regarding U.S. President Donald Trump's planned visit to China and meeting with Chinese President Xi Jinping, scheduled for the 14th to 15th, Bessent said, "As far as I know, President Trump does not intend to change his itinerary."

He added, "China has been providing financial support to Iran through its energy purchases. We have been urging China to stop such actions, and this remains an ongoing topic of discussion."

This content was produced with the assistance of AI translation services.