U.S. Control Over the Hormuz Strait#
On Monday, Treasury Secretary Scott Bessent stated that the United States maintains complete control over the Hormuz Strait, a vital waterway for global oil transport. During an appearance on Fox News, he encouraged Iran to allow over 300 vessels to exit the strait with U.S. assistance, asserting that Iran does not have control over this critical passage.
Calling for International Support#
Bessent emphasized the need for international partners to pressure Iran, specifically urging China to collaborate in the efforts to reopen the Hormuz Strait. He pointed out that China is currently purchasing 90% of Iranian energy, making their involvement significant. The upcoming summit between President Trump and President Xi presents an opportunity for both leaders to discuss this issue and work towards stabilizing U.S.-China relations.
Oil Supply Concerns#
The Treasury Secretary highlighted a looming oil deficit, estimating a shortfall of 8 to 10 million barrels per day. Each carrier passing through the Hormuz Strait typically transports about 2 million barrels of oil. Bessent described the Iranian economy as being in a state of decline, indicating the broader implications for global oil markets.
U.S. Military Stance#
Bessent clarified that the U.S. military's actions, referred to as Project Freedom, were not coordinated with Iran. He stated that the U.S. is not provoking conflict but is prepared to respond if necessary. The military will only engage if attacked, reinforcing a defensive posture. He expressed optimism that oil prices will eventually decrease, viewing the current situation as a temporary disruption that could resolve in weeks or months.