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Treasury Secretary Scott Bessent clashed with NBC’s Kristen Welker on Sunday as the two debated the effects of the war with Iran, specifically with regard to oil, as gas prices have skyrocketed since the war began.
Welker pressed Bessent on why the Treasury Department “lifted sanctions on Iranian oil stored on tankers,” which, according to Welker, would allow Iran to “get more than $14 billion of oil revenue.” Bessent rejected Welker’s framing, and said, “Kristen, why don’t we have good facts here?”
“That Iranian oil was always going to be sold to the Chinese. It was going to be sold at a discount. So, which is better, Kristen? Which is better if oil prices spiked to $150, and they were getting 70% of that, or oil prices below $100? It’s better to have them where they are now. And to be clear, we had always planned for this contingency. About 140 million barrels are out on the water. In essence, we are jiu-jitsu-ing the Iranians,” he told Welker.
Welker then asked Bessent about how much lifting the sanctions would really help prices.
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“Let me talk about the real-world impact of this because you’re talking about 140 million barrels of Iranian oil, and that’s just a little bit more than what the world uses in one day. How much can that really change prices here?” Welker asked.
Bessent responded by saying, “Kristen, terrible framing. Terrible framing.” He then went on to explain that roughly 20 million barrels per day come out of the Gulf, and that five million are repurposed by Saudi Arabia.
“One hundred and forty million barrels, about 20 million barrels a day, come out of the Gulf. About 5 million has been repurposed by the Saudis, by the UAE. So we’re at a 15 deficit. About one-point-five is Iranian oil that comes out. So we are at between a 10 and 14 million deficit on a daily basis. So, if you think about 140 million barrels, that’s between 10 days and two weeks of supply,” Bessent said.
He continued, saying, “And one of the reasons that prices in the U.S. of West Texas intermediate are below $100 — and we have not seen this massive spike as we did during the beginning of Russia-Ukraine — is because we are well supplied in the market. Whether it is the Russian oil, whether it is the Iranian oil, or it is the largest SPR release in history done by a coalition of 32 countries, 400 million barrels.”
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Welker accused the Trump administration of “rewarding” Russia by easing sanctions earlier this month, to which Bessent said she was “missing the point.”
“Again, Kristen, you’re missing the point. Which is better? Does Russia get more money if oil goes to 150, and they get 70% of that, that’s 105, or if oil stays below 100? So they’re getting less money. Our analysis shows that the maximum extra amount the Russia could get would be $2 billion, which is one day of the Russian Federation’s budget,” Bessent said.
“I don’t know who does your research, you should get rid of them because they were getting it. It was going into China. China was buying over 90% of the Russian oil,” Bessent said, as Welker insisted Russia wouldn’t be getting any of the money if they didn’t ease the sanctions.
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President Donald Trump issued a 48-hour ultimatum to Iran on Saturday, warning the U.S. would strike its power plants if the Strait of Hormuz is not reopened.
“If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!” Trump said in a post on Truth Social.
Traffic through the Strait of Hormuz, a global choke point for oil and gas transport that supplies roughly one-fifth of the world’s crude oil, has been largely limited since early March, shortly after the war with Iran began.
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