Treasury Secretary says Iran conflict will decide if oil prices drop in 2026

Treasury Secretary Scott Bessent stated over the weekend that the outcome of the war in Iran will determine whether oil prices decrease before the end of 2026, according to reports from foxbaltimore.com and turnto10.com. He made these remarks during an interview with NBC News where he was asked about the potential for lower oil prices by year's end.

Bessent noted that gas prices have been rising due to the ongoing conflict in Iran, describing the situation as an energy shock. He highlighted that core inflation is down, food prices are below the Federal Reserve's targets, prescription drug prices have seen historic decreases, and rents are also down.

The Treasury Secretary expressed optimism that once the Iran conflict resolves, oil prices will come down. This view contrasts with former Trump White House economic adviser Steve Moore, who told The National News Desk that inflation is likely to remain above the Federal Reserve's long-term target due to sustained high energy prices.

Moore pointed out that oil prices staying between $90 and $100 a barrel are a major obstacle to reducing inflation, underscoring the significance of energy costs in the broader economic outlook.