After meeting with Russia’s finance minister, the Treasury secretary said Ukraine’s attacks on Russian oil infrastructure were contributing to a global energy shock driven mainly by the US war with Iran.
Treasury Secretary Scott Bessent named a new culprit this week for the high energy prices that are weighing on the world economy: Ukraine.
Following two days of meetings in North Carolina with finance ministers from around the world, Mr. Bessent cited Ukraine’s attacks on Russia’s oil infrastructure as part of the reason for the global energy shock.
The comments came after the United States angered some allies who have staunchly supported Ukraine for inviting Russia’s finance minister, Anton Siluanov, to the gathering of the Group of 20 nations. Four years into the war, Ukraine has recently resorted to launching drone attacks on Russian oil refineries, costing Russia tens of millions of barrels in refined oil exports and disrupting global supplies.
“We are going through an energy shock right now due to both the war in Ukraine — because Ukraine has decided that they want to blow up Russian energy assets and refine products, so that is creating upward price pressure on a global basis,” Mr. Bessent said on Fox News on Wednesday. “And then the conflict in Iran. And the conflict in Iran will end.”
Mr. Bessent is facing a challenge as he tries to cool global energy prices while increasing economic pressure on Iran. U.S. diesel fuel prices approached a record high on Thursday as the price of Brent crude, the global benchmark for oil, ticked up to about $97 a barrel.
Most lawmakers in the United States consider Russia the aggressor in its war with Ukraine. The Senate passed bipartisan legislation that would require the Trump administration to impose tougher sanctions on Russia.
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