US Treasury Secretary Scott Bessent said Thursday that oil and natural gas prices could fall below pre-conflict levels as markets stabilize and global supplies rebound, while reiterating that any deal with Iran hinges on Tehran guaranteeing free navigation through the Strait of Hormuz.
Speaking at a White House press briefing, Bessent said Trump would not accept what he described as a "bad deal" with Iran and insisted the administration's military and economic pressure campaign had succeeded in bringing Tehran to the negotiating table.
"President Trump has made it very clear," Bessent said. "Iran has to turn over their highly enriched uranium. They cannot pursue a nuclear weapon, and the Strait of Hormuz has to have free transit."
Bessent declined to confirm reports of a tentative agreement that would extend the 60-day ceasefire and continue nuclear negotiations, saying it would be "a mistake to get out ahead of the president."
"Everything depends on what the president wants to do," Bessent said.
The remarks came amid heightened geopolitical tensions and concerns over energy supplies following months of the ongoing conflict in the Middle East.
Secretary Bessent sought to reassure markets, saying the US was better positioned to weather energy price volatility because of Trump's push for expanded domestic energy production and deregulation.
"We are more resilient to energy price fluctuations due to President Trump's energy dominance and deregulatory agenda," he said, adding that the US was now "the world's largest energy exporter."
Bessent said oil prices had already fallen about 10% in May and argued that global crude markets would remain well supplied despite disruptions in the Middle East.
"There are almost 2,000 ships waiting to come out of the Arabian Gulf, and I think the oil market is going to be very well supplied on the other side of this," Bessent said. "We could see prices come down very quickly."
Treasury Secretary also pointed to lower natural gas prices and said oil could eventually trade below levels seen before the latest conflict erupted.
Meanwhile, the White House dismissed speculation that the US was preparing for military action against Oman after Trump warned at a cabinet meeting that countries interfering with navigation through the Strait of Hormuz would face severe consequences.
"The President wanted to punctuate freedom of navigation in the Strait," Bessent said.
He added that he had spoken earlier on Thursday with Oman's ambassador, who assured him Muscat had no plans to impose transit tolls in the strategic waterway.
On whether sanctions relief for Iran was being considered before Tehran made concrete commitments on its nuclear program, Bessent said discussions were part of a "multifaceted agreement" but indicated any easing would proceed cautiously.
"Nothing is going to be on the table until we see the Strait open and the Iranians agree that they have to turn over the highly enriched uranium and that they can't have a nuclear program," he said.