Oil prices to fall as US destroys Iran’s ability to attack tankers in Strait of Hormuz: Wright

Energy Secretary Chris Wright said oil and gas prices would begin to fall when the U.S. begins to knock out Iran’s ability to block tanker traffic through the Strait of Hormuz, as Americans drive up gas prices because of the war in Iran.

“The plan is to get oil and natural gas and fertilizer and all the products from the Gulf flowing through the strait very early,” Wright said on Fox News Sunday. “We are massively identifying their ability to strike with missiles and drones, and that rate of attrition will increase in the coming days. So we are cautious, we are cautious, but the power will flow soon.”

President Donald Trump was elected to a second term in the White House, promising to lower gas prices and beat high inflation. He has often promoted low gas prices ahead of the November midterm elections, which will determine control of Congress for the rest of his term.

But gas and oil prices have risen since the start of the war in Iran, with shipping bottlenecks in the Strait of Hormuz fueling the surge. About 20% of global energy supplies move through the Straits.

The average in the US is more than $3.46 per gallon, according to GasBuddy. US crude oil has risen above $91 per barrel and is the global benchmark Brent Crude oil rose to $92 per barrel.

“A large tanker has already gone through the strait without any problems,” Wright said. Typically, approximately 100 tankers and cargo ships move through the strait every day.

The disruption “will last for weeks, certainly not months,” Wright said.

“We believe it’s a small price to pay to get the world back to where energy prices were,” Wright said. “Iran will eventually be destabilized, and now you can see more investment, more free trade flows, less ability to threaten energy supplies.”