Treasury Secretary Bessent Says Oil Could Fall to $40 After Iran War Ends

TLDR

• Treasury Secretary Scott Bessent predicts oil could fall to $40 a barrel once the Iran conflict ends
• Brent crude was trading above $95 a barrel on Friday, near its highest level since July
• Ten-year US bond yields hit their highest point since 2023 this week
• Bessent says oil prices and interest rates are at their highest-ever correlation
• Norway’s sovereign wealth fund is considering cutting its US Treasury holdings by $75 billion

Treasury Secretary Scott Bessent says oil prices could fall as low as $40 a barrel once the war with Iran is over. He made the comments in an interview with Steve Bannon that aired Friday.

“We’re going to get on the other side of this Iran conflict, and I expect that oil will come down,” Bessent said. He added that markets could see $50 or even $40 crude because of how much new supply is coming online.

Bessent did not give a timeline for when the conflict would end. One Republican lawmaker on the House Armed Services Committee described the military situation as “stalled” this week.

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