Treasury Secretary Scott Bessent said oil prices could fall to as low as $40 a barrel once the Iran conflict ends, according to an interview aired on Friday. He linked the expected drop in crude prices to a potential oversupply in the oil market following the resolution of tensions in the region, which have recently pushed bond yields to multi-year highs.
Bessent made the remarks during an interview with Steve Bannon, where he forecasted a significant decline in oil prices as the geopolitical situation stabilizes. He noted that the current conflict involving Iran has tightened supply, but once resolved, the market will face an excess of oil. This oversupply is expected to drive prices down sharply, with $50 and $40 per barrel crude prices within reach.
The outlook for oil prices is significant given the recent volatility caused by geopolitical tensions in the Middle East. Oil prices have surged amid fears of supply disruptions, impacting global bond yields and inflation expectations. Bessent’s projection contrasts with the current elevated prices and suggests a potential easing of energy costs, which could influence economic conditions and financial markets globally.
The interview was reported by Bloomberg and published by livemint.com on September 5, 2026, providing a timely perspective on oil market dynamics amid ongoing geopolitical developments.