US Energy Secretary Chris Wright has indicated that global oil prices are likely to reach their peak in the coming weeks, contingent on the resumption of shipping through the Strait of Hormuz.
Speaking at the Semafor economic forum in Washington, Wright noted that energy prices are expected to remain elevated, potentially increasing further until substantial volumes of vessels begin to transit the strait.
“We will see a peak in oil prices around that time. This will happen in the next few weeks,” Wright stated.
Wright also highlighted a rise in oil production from Venezuela following the takeover by Nicolás Maduro and subsequent reforms to the country’s oil legislation. Since January 3, Venezuela has sold 150 million barrels of oil, with production increasing by 25%.
In a related statement, President Donald Trump acknowledged that oil and gasoline prices may remain high until the midterm elections in November. This admission reflects the potential political ramifications of his administration’s recent military actions against Iran.
Regarding the situation in the Strait of Hormuz, since the onset of conflict on February 28, Iran has effectively closed the strait to all vessels except its own. Tehran appears to be seeking to solidify its control over this critical waterway, potentially imposing transit fees.
In response, the US Navy has implemented a blockade of the strait, extending its operations to the Gulf of Oman and the Arabian Sea. Tracking data indicates that two tankers have turned away from the strait since the blockade was initiated.
US Energy Secretary Chris Wright has forecasted a peak in global oil prices in the coming weeks, linked to shipping activity in the Strait of Hormuz. The situation has escalated following Iran's actions to control the strait and the US military's response.