Treasury chief links Ukrainian attacks on Russian energy to soaring global fuel costs

During the Group of 20 finance ministers gathering in Asheville, Treasury Secretary Scott Bessent attributed the recent rise in global energy prices to Ukraine's summer drone attacks on Russian oil infrastructure, describing it as part of an "energy shock" alongside the conflict with Iran. He explained that the ongoing turmoil in the Strait of Hormuz, where Iranian forces have targeted shipping and the United States has imposed blockades, adds further instability to oil markets.

While acknowledging the upward pressure on prices, Bessent emphasized that overall energy costs are beginning to decline and that U.S. core inflation remains manageable. He highlighted recent economic gains, such as a 4.7% wage increase for the bottom 25% of earners and Chevron's new investment in Venezuelan oil following a prior deal. Bessent concluded that the Iran conflict will eventually end, allowing the recent wage improvements to persist, and reiterated that the current price surge is temporary.