Treasury Secretary Scott Bessent assured stakeholders that global energy markets are positioned to remain stable despite ongoing tensions in the Strait of Hormuz, while addressing inflation data, diplomatic efforts with Iran, and the administration’s economic outlook.
Fielding questions from reporters, Bessent addressed recent economic indicators, noting that the Personal Consumption Expenditures (PCE) index increased 0.2% month-over-month—below the anticipated 0.3% forecast. “One month doesn’t a trend make,” he remarked, cautioning against drawing long-term conclusions from a single data point.
Bessent pointed to several factors supporting energy market resilience. Crude oil prices fell roughly 10% during May, and nearly 2,000 vessels are currently queued to depart the Gulf region, signaling significant pent-up supply capacity. “I think the oil market will be very well-supplied on the other side of this,” Bessent said, adding that prices could decline rapidly once transit bottlenecks resolve. He referenced the United Arab Emirates’ (UAE) recent exit from OPEC as a development contributing to greater market flexibility and stated that gasoline prices are expected to trend downward alongside crude.
On the diplomatic front, Bessent confirmed that negotiating teams continue to exchange proposals regarding a potential 60-day ceasefire extension. While no final agreement with Iran has been announced, he reiterated the core conditions President Donald Trump has established for any deal. According to Bessent, these non-negotiable requirements include Iran surrendering its stockpile of highly enriched uranium, abandoning any pursuit of nuclear weapons capability, and ensuring unimpeded maritime passage through the Strait of Hormuz.
“The Strait of Hormuz… has to be free and open,” Bessent stressed, emphasizing that freedom of navigation remains a foundational priority. He noted that President Trump personally underscored these red lines during a recent cabinet meeting.
Bessent also shared a broader economic aspiration, stating the administration aims to “create a generation of shareholders,” though he did not detail specific policy steps toward that objective.
The Treasury Secretary’s comments arrive as markets monitor the intersection of geopolitical developments and domestic economic signals, with policymakers balancing regional security concerns against inflation and energy affordability.