Bessent rules out government intervention in oil futures market during Iran war

Core Viewpoint - The U.S. government will not intervene in oil futures markets but will focus on increasing physical crude availability to address supply disruptions related to the Iran conflict [1][2]. Group 1: U.S. Government's Strategy - Treasury Secretary Scott Bessent emphasized that the administration is not planning to intervene in financial markets, but rather is supplying physical oil to stabilize the market [2]. - A coordinated supply response has been prepared to mitigate the impact of potential disruptions in the Strait of Hormuz, with the U.S. having already "unsanctioned" approximately 130 million barrels of Russian oil and could do the same for about 140 million barrels of Iranian oil [2][6]. - By unsanctioning floating Iranian oil, the U.S. could create an excess of about 260 million barrels of energy, which Bessent referred to as a "physical intervention" [3]. Group 2: Market Stabilization Efforts - The volume of unsanctioned oil could address a temporary deficit of 10 million to 14 million barrels per day, providing around three weeks of market stabilization if shipping through the Strait is interrupted [6]. - A historic release of 400 million barrels from the Strategic Petroleum Reserve (SPR) was approved last week, with the possibility of further unilateral actions to maintain lower prices [7][6]. Group 3: Broader Implications - Bessent framed the strategy as a means to balance pressure on Iran while ensuring energy market stability, avoiding strikes on Iranian energy infrastructure to preserve supply [9]. - The U.S. does not heavily rely on Middle Eastern oil, but disruptions in the Strait of Hormuz have affected supply and created volatility in crude futures markets [10].