According to a report from Sky News, Bessent said in an interview on Thursday that the military escort would likely include an international coalition.
- Bessent also mentioned that the Iran war had cost the U.S. about $11 billion so far.
- The comments from the Treasury Secretary come as crude oil prices have breached the $100-per-barrel mark amid the war with Iran.
- Meanwhile, a report from Business Insider said that a former IMF economist had said that oil prices could rise further amidst the war, possibly surging to $200 a barrel amid compounding risks.
U.S. Treasury Secretary Scott Bessent has reportedly said that the Navy will escort ships through the Strait of Hormuz “as soon as it is militarily possible.”
According to a report from Sky News, Bessent said in an interview on Thursday that the military escort would likely include an international coalition.
“That was always in our planning, that there’s the chance that the U.S. Navy or perhaps an international coalition will be escorting oil tankers through,” Bessent said.
The comments from the treasury secretary come as crude oil prices have breached the $100-per-barrel mark amid escalating tensions due to the war with Iran.
Brent crude prices soared by over 10% to $101.48 at the time of writing, the highest since mid-2022 levels. Meanwhile, WTI Crude was trading around $96.44. The United States Oil Fund ETF (USO) closed 9.6% higher on Thursday, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) closed up by more than 10%.
War Impact
In the interview, Bessent mentioned that the Iran war had cost the U.S. about $11 billion so far. He also noted that Iran had not mined the Strait of Hormuz.
In addition, the Treasury Secretary also indicated how the rising oil prices have not impacted the economy, and the real thing to consider would be the duration of the elevated prices.
Oil Above $200?
Meanwhile, a report from Business Insider said that a former International Monetary Fund (IMF) economist had said that oil prices could rise further amidst the war, possibly surging to $200 a barrel amid compounding risks.
Economist and former IMF official Olivier Blanchard reportedly wrote on Thursday on the factors that could further oil's volatile price moves. "I find it hard not to have as a central scenario where oil prices will remain very high for a long time, higher than the market current prices," Blanchard reportedly wrote on Thursday.
Blanchard said ships can’t be fully protected in the Strait of Hormuz and that Iran has no incentive to stop threatening traffic, while adding that markets can’t rely on another “TACO (Trump always chickens out) trade” since the conflict’s outcome isn’t solely up to the U.S. president.
Meanwhile, U.S. stocks were under pressure on Thursday, with the Dow Jones Industrial Average closing at the lowest level in 2026 at 46,677.85. The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, closed 1.52% lower, the Invesco QQQ Trust ETF (QQQ) was down 1.72% at market close, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 1.54%.
On Stocktwits, retail sentiment around the S&P 500 ETF was in the ‘bearish’ territory at the time of writing.
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