Scott Bessent predicts oil prices could drop to $40 after Iran conflict ends

oil prices Scott Bessent Iran conflict US Treasury yields energy markets

US Treasury Secretary Scott Bessent has projected that crude oil prices could fall to as low as 40 or 50 dollars per barrel once the conflict with Iran concludes. He anticipates that the resolution of the hostilities will trigger a significant increase in global oil supply, potentially easing inflationary pressures and driving down US bond yields.

Currently, energy markets are experiencing high volatility due to military tensions between the US and Iran. Brent crude has been trading above 95 dollars per barrel, near its highest levels since July, while West Texas Intermediate (WTI) has hovered around 91 dollars per barrel. This surge in energy costs has contributed to rising inflation concerns and pushed the 10-year US Treasury yield to its highest level since 2023.

In India, the impact of geopolitical instability is evident as the country's benchmark crude oil basket reached 99.35 dollars per barrel on September 2, nearing the 100-dollar mark. This rise in costs threatens to increase India's import bills and domestic inflation.

Entities

Bloomberg · Brent · Brent crude · India · Iran · Reuters · Scott Bessent · US Treasury · United States Department of the Treasury · West Texas Intermediate

Claims

What the coverage asserts, and how many sources carry each claim.

[● 5 SOURCES] The yield on the 10-year US Treasury bond reached its highest level since 2023 this week. www.reporter.gr · www.fortunegreece.com · www.mononews.gr · www.aajtak.in · www.metrosport.gr
[● 6 SOURCES] Brent crude was trading above 95 dollars per barrel on Friday, near July highs. www.reporter.gr · www.fortunegreece.com · www.mononews.gr · www.aajtak.in · www.tv9hindi.com · +1 more
[● 5 SOURCES] The relationship between oil prices and interest rates has reached its highest correlation ever recorded. www.reporter.gr · www.mononews.gr · www.aajtak.in · www.fortunegreece.com · www.metrosport.gr
[● 5 SOURCES] West Texas Intermediate (WTI) was trading near 91 dollars per barrel. www.reporter.gr · www.mononews.gr · www.aajtak.in · www.fortunegreece.com · www.metrosport.gr
[● 2 SOURCES] US federal debt has surpassed the 40 trillion dollar mark. www.fortunegreece.com · www.metrosport.gr
[● 5 SOURCES] A drop in oil prices could press down bond yields, which have recently reached multi-year highs. www.pressen.se · www.aajtak.in · www.reporter.gr · www.fortunegreece.com · www.mononews.gr
[● 6 SOURCES] US Treasury Secretary Scott Bessent predicts oil prices could drop to 40 dollars per barrel following the end of the conflict with Iran. www.pressen.se · www.reporter.gr · www.fortunegreece.com · www.mononews.gr · www.aajtak.in · +1 more
[● 6 SOURCES] The end of the conflict with Iran is expected to lead to a significant increase in global oil supply. www.reporter.gr · www.fortunegreece.com · www.mononews.gr · www.aajtak.in · www.pressen.se · +1 more
[○ 1 SOURCE] India's benchmark crude oil basket reached 99.35 dollars per barrel on September 2. www.tv9hindi.com