Treasury Secretary Scott Bessent Predicts Oil Price Drop Post-Iran Conflict
· Business · LiveMint, Economic Times
US Treasury Secretary Scott Bessent stated that oil prices could fall to as low as $40 a barrel once the current conflict with Iran concludes. He attributed this potential decline to an expected oversupply in the global oil market as production capacity increases. Brent crude recently traded above $95, while West Texas Intermediate hovered near $91 following military strikes between the US and Iran. Bessent noted that bond yields, which reached their highest levels since 2023 this week, show a strong historical correlation with energy prices. He also addressed concerns regarding Norway’s sovereign wealth fund, dismissing fears about the fund's potential reduction in US Treasury holdings.
Why it matters
A significant drop in oil prices could alleviate global inflationary pressures and lower bond yields, directly impacting the cost of government borrowing and consumer energy prices in India and abroad.
Read the original report — LiveMint
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