U.S. Treasury Secretary Says Iran's Oil Storage Facilities Are Near Capacity... Will Oil Prices Reverse?

\r\n[The Financial News] Scott Bessent, United States Secretary of the Treasury, said he expects oil prices in the United States to plunge once the war with Iran ends.
In an interview with Fox News on the 3rd local time, Bessent said, "I am optimistic that after the war ends, oil prices will be much lower than at any point earlier this year, or in 2020 or 2025." He added, "In the futures market, we can already see that oil prices for three, six and nine months ahead have fallen."
Bessent also said that Iran's oil storage facilities are reaching capacity because of the U.S. blockade of Iranian vessels in the Strait of Hormuz. "If this continues, they will soon have to shut down oil wells, and I think that could happen as early as next week," he said.
He also commented on the toll Iran charges for passage through the Strait of Hormuz, saying, "Their toll revenue is less than $1.3 million. That is very small compared with their past daily oil income."
Bessent also addressed Iran's attacks on other Middle Eastern countries during the war. He said, "Gulf neighbors that had been somewhat lenient in allowing funds from the Islamic Revolutionary Guard Corps (IRGC) and the Iranian regime to flow into their financial systems provided us with very detailed information this time, which allowed us to freeze those assets." He added, "The IRGC is watching the stolen assets it accumulated over 47 years get frozen and disappear in an instant."
\r\n\r\nMeanwhile, Bessent said he did not expect President Donald Trump to change his schedule for the planned visit to China and meeting with President Xi Jinping on the 14th and 15th. "As far as I know, President Trump does not intend to alter the schedule," he said.
He added, "China has been financing Iran through energy purchases. We have urged China not to do that, and that remains a topic of ongoing discussion." His remarks suggested that the Iran war and energy supply chains will be key issues at the upcoming U.S.-China summit.
whywani@fnnews.com Hong Chaewan Reporter