U.S. Energy Secretary Chris Wright said Friday that low oil prices will increase President Donald Trump’s influence over Iran, as the two adversaries teeter on the brink of a new conflict.
Asked about the risk of supply disruptions due to tensions with Iran, Wright said in an interview with CNBC: “There’s a huge supply of oil in the world right now, and I think this will allow President Trump to have more influence over his geopolitical actions without having to worry about crazy oil price spikes.”
Oil markets have stopped monitoring tensions in the Middle East for signs of disruption to crude supplies.
usa crude oil Oil prices rose 26 cents, or 0.4%, on Friday to close at $63.55 per barrel. Prices have increased by more than 10% since the beginning of the year and are expected to fall by 20% in 2025. Oil market analysts generally expect oil to be in surplus this year as U.S. production remains strong thanks to OPEC+ production increases.
President Trump has threatened military action if Iran does not negotiate over its nuclear program and has dispatched the aircraft carrier Abraham Lincoln Strike Group to the Middle East. The president threatened to attack Iran in January during a major uprising against the Iranian regime, but ultimately backed down.
U.S. and Iranian diplomats held talks over the Islamic Republic’s nuclear program in Muscat, Oman early Friday. Iranian Foreign Minister Abbas Araghchi told state media that the talks were a “good start”.
Iran is a member of OPEC and produces more than 3 million barrels per day.
Wright expects Venezuela’s production to increase by hundreds of thousands of barrels a day this year after the United States detained former President Nicolas Maduro in early January. The United States has taken control of Venezuela’s oil sales, and President Trump is pressuring American companies to rebuild the energy sector.
Wright said South American countries’ production growth “will account for a significant proportion of global demand growth this year.” “Venezuela will help stabilize the energy market.”
