Middle East crisis pushes oil prices soar, US "reveals" the time to cool down

Tensions in the Middle East caused world oil prices to rise sharply when shipping through the Strait of Hormuz was disrupted. However, US Energy Secretary Chris Wright said that the market may soon stabilize again.

Geopolitical tensions in the Middle East are causing the global energy market to fluctuate sharply, especially oil and gas prices. However, U.S. Energy Secretary Chris Wright said the situation could soon be brought under control as the U.S. gradually weakens Iran's ability to strike oil tankers passing through the Strait of Hormuz, the world's most important energy shipping lane.

Speaking on CBS's "Face the Nation," Wright emphasized that Washington is implementing measures to ensure that energy flows from the Bay Area return to normal soon. According to him, the immediate goal is to restore the transportation of oil, natural gas, fertilizers and many other types of energy products from this region to major markets around the world.

The U.S. Energy Secretary said military efforts are focused on degrading Iran's ability to strike with missiles and drones, which are believed to be a danger to transport ships passing through the Strait of Hormuz. "We are drastically degrading our capabilities with their missiles and drones. This process will accelerate in the coming days. So we will act cautiously but the flow of energy will be restored soon," Mr. Wright said.

These remarks come as U.S. consumers are under pressure from rising gasoline prices, as military tensions between Washington and Tehran disrupt energy transportation in the Middle East. The Strait of Hormuz has long been considered the "lifeline" of global oil trade as about 20% of the world's energy supply is transported through this route.

According to Wright, although ship traffic is now much lower than usual, a large oil tanker has passed through the Strait of Hormuz without any problems. Under normal conditions, hundreds of oil tankers and cargo ships pass through the region every day to transport energy from the Middle East to Europe, Asia and other markets.

The U.S. Energy Secretary also predicted that the current disruption would not last too long. He said the difficulties in transporting energy could only last for "weeks, certainly not months."

"This is a small price to pay towards a more energy-stable world. When Iran is no longer able to threaten shipping routes, trade flows will be freer, investment will increase, and the risk of supply disruptions will decrease," Wright said.

"We are ready to use SPR if needed. But the problem now is mainly transportation – oil needs to be delivered to refineries in Europe and Asia," he added.

Meanwhile, US President Donald Trump also expressed optimism about the country's energy supply. Speaking to reporters aboard Air Force One over the weekend, he said the U.S. still has abundant oil resources and that the market will soon stabilize again.

"We have a lot of oil. The country has huge resources. There's a lot of oil out there and everything will be fixed soon," Trump said.

Earlier, on March 8, Mr. Trump also said that the short-term increase in oil prices was only "a very small price to pay" in exchange for the goal of ensuring security and stability in the context of the conflict in the Middle East continuing to escalate.