US expects weeks of energy disruption as Iran conflict hits oil flows

The United States has warned that global energy markets could face several weeks of disruption as the conflict involving Iran affects oil shipments, although Washington believes the impact will ultimately be short-lived.

US energy secretary Chris Wright said the fighting had already begun to affect oil flows through key routes but insisted that coordinated international measures and ongoing military operations would help stabilise supplies.

In separate television interviews with Fox News and NewsNation, Wright said the United States and its partners were releasing strategic petroleum reserves to cushion the global market while efforts continued to secure the Strait of Hormuz, one of the world’s most important oil shipping routes.

Speaking to Chris Cuomo on NewsNation, Wright said the administration expected the economic effects of the conflict to be temporary.

“We’ve repeatedly said the conflict will be measured in weeks, not months,” he said, acknowledging that the fighting could cause short-term increases in energy prices.

Wright stressed that Washington does not control global oil prices, noting that energy markets operate internationally.

“We’ve never said we control oil prices. Of course, that’s ridiculous,” he said, adding that the United States remains the world’s largest producer of natural gas.

The energy secretary said the government had already begun drawing on emergency oil reserves to offset supply disruptions. According to Wright, more than 30 countries are taking part in the coordinated release of oil stocks.

In a separate interview with Laura Ingraham on Fox News, he said the international effort could release as much as 400 million barrels of oil to stabilise markets while shipping flows remain restricted.

“This is to tide the world over while these flows are restricted,” Wright said.

He added that US policy was currently focused on limiting Iran’s ability to threaten maritime traffic in the Gulf region.

“The most critical thing right now is the US military degrading its ability to project power,” Wright said, noting that operations were under way to reduce threats to vessels passing through the Strait of Hormuz.

The administration expects shipping traffic through the strategic waterway to gradually return once the security situation improves.

“Hopefully, in the next few weeks, we will see ship traffic returning,” Wright said. “The world is going back to normalcy.”

During the interviews, Wright also blamed Tehran for long-standing instability in regional energy markets, arguing that reducing Iran’s military capabilities would eventually help restore investor confidence and stabilise supplies.

“This will be a different world on the other side of this,” he said.

With IANS inputs