US Politics
US energy secretary addresses deleted Strait of Hormuz post that sparked oil market chaos
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it’s investigating the financials of Elon Musk’s pro-Trump PAC or producing our latest documentary, ‘The A Word’, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.
Read more
The U.S. energy secretary has taken responsibility for a social media post from his account that sparked confusion about the ongoing conflict in the Strait of Hormuz.
The post on energy boss Chris Wright’s account incorrectly stated the U.S. Navy had escorted an oil tanker through the strait, which Iran has shut down amid the war.
“President Trump is maintaining stability of global energy during the military operations against Iran,” it stated. “The U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing to global markets.”
White House Press Secretary Karoline Leavitt later confirmed that the Navy has not escorted any vessel through the Strait of Hormuz.
Wright said in an interview with Fox News Thursday that the post was the result of a miscommunication in his department, and that he will personally approve posts in the future so that it does not happen again.
He also cast doubt on Iran’s claims that oil prices will hit $200 a barrel amid the U.S. and Israel’s ongoing attacks on the country.
“I would say unlikely, but we are focused on the military operation and solving a problem,” Wright told CNN when asked if prices would reach that height.
Wright’s use of the word “unlikely” was a veiled concession that a spike to $200 was possible, though he repeated that the price jump would be weeks not months.
With the U.S.-Israeli war on Iran widening, two crude tankers were ablaze in an Iraqi port after a hit by suspected Iranian explosive-laden boats, while scores of other oil-laden ships remained stranded with the strait still shuttered.
Oil prices jumped more than 9% to nearly $100 a barrel. Brent oil hit all-time highs in 2008 of around $147 per barrel, on tension between the West and Iran over its nuclear program, a weak U.S. dollar, and inflation fears.
This time, analysts say oil prices could remain high because of the strait’s unprecedented shuttering.
“Get ready for the oil barrel to be at $200 because the oil price depends on the regional security which you have destabilized,” Ebrahim Zolfaqari, the spokesperson for Tehran’s Khatam al-Anbiya military command headquarters, said on Wednesday.
Wright told CNN: “We’re in the midst of a significant disruption in the short term to fix the security of energy flow for the long term.” The administration was focused on “pragmatic solutions … to get through these few weeks of tight energy supply,” he said.
Trump wrote in a social media post: “The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money.” He said he was more focused on stopping Iran from having nuclear weapons.
On Wednesday, Trump urged oil companies to travel through the strait despite the risks. “I think they should use the strait,” Trump said. Asked if Iranian mines were in the strait, he added: “We don’t think so.”
Wright told CNBC Thursday that the U.S. Navy cannot escort ships through the Strait of Hormuz now but it was “quite likely” that could happen by the end of the month.
OIL JUMPS DESPITE RECORD DRAW
On Wednesday, more than 30 countries in the International Energy Agency agreed to the biggest-ever coordinated drawdown of global oil reserves of 400 million barrels, about 40% of which will come from the United States.
The war has forced Middle East Gulf countries to cut total oil production by at least 10 million barrels per day, about 10% of world demand. The IEA said on Thursday that is the biggest oil supply disruption in the history of the global market.
The U.S. will release 172 million barrels of oil from the Strategic Petroleum Reserve, which Wright on Thursday said would be swapped with more than 200 million barrels that will be put back in the reserve within a year.
Wright told CNBC the energy shortages were less likely to affect the United States and other Western Hemisphere countries. “There’s no shortage or even really tight oil market in the Western Hemisphere. The issue’s in Asia.”
U.S. gasoline prices continue to spike 13 days into the war at an average of $3.60 per gallon, according to AAA. Rising oil prices are also likely to boost the costs of other goods, with the closed strait also stalling shipments of fertilizer ingredients and likely raising prices on household items that could hit consumers for months.
Trump had campaigned on lower gasoline and other prices, with Americans set to vote this November in midterm elections that will decide whether his fellow Republicans keep control of Congress.