Disrupted supplies have put upward pressure on prices worldwide, Scott Bessent has said
Ukrainian attacks on Russian energy infrastructure have fueled a global “energy shock” and pushed prices higher, US Treasury Secretary Scott Bessent claimed. The disruption has compounded strains caused by the Iran war, he added.
Ukraine has ramped up long-range drone strikes against Russia’s energy sector this year, targeting oil refineries, storage facilities, and export infrastructure deep inside the country. Kiev says the campaign is aimed at weakening Russia’s ability to finance and maintain its military operations.
Speaking to Fox on Wednesday, Bessent said the world is experiencing an energy shock partly because of the Ukrainian strikes.
”Ukraine has decided that they want to blow up Russian energy assets and refined products,” which is “creating upward price pressure on a global basis,” he said.
Bessent:
We are going through an energy shock right now.
Ukraine has decided that they want to blow up Russian energy assets.
The strikes have significantly disrupted Russian refining, according to energy analytics firm Kpler. It said last week that refinery runs fell to around 3.8 million barrels per day in July, their lowest level in more than two decades. Refined-product exports dropped to around 1.2 million barrels per day, down from 2.3 million a year earlier.
Moscow has accused Kiev of increasingly targeting civilian infrastructure amid Ukrainian setbacks on the battlefield. Russia has retaliated with massive drone and missile strikes on Ukraine’s military-linked infrastructure and shipping facilities, effectively crippling the country’s main export route through its Black Sea ports.
The Iran war has also strained global energy markets, according to Bessent. Before the US and Israel attacked Iran in February, around a fifth of global energy supplies passed through the Strait of Hormuz. Tehran’s subsequent restrictions on commercial shipping, coupled with the US naval blockade, have disrupted flows and pushed prices higher.
Washington has stepped up economic pressure on Tehran. Bessent warned on Sunday that the US could unleash “financial violence” against Iran, threatening new secondary sanctions every week against Tehran and those doing business with it.
