PiCK
Bessent Says US Ready to Respond if Iran Escalates, Urges China to Join Hormuz Operations
Summary
- Scott Bessent, the US Treasury secretary, said China is buying about 90%% of Iran's energy and urged Beijing to join operations in the Strait of Hormuz.
- Bessent said the US is prepared to respond if Iran escalates tensions, adding that the current situation is a temporary distortion that could normalize within weeks or months.
- He also said the global oil market is facing a daily supply shortfall of 8 million to 10 million barrels, and that energy prices would fall quickly once the conflict ends.
Forecast Trend Report by Period
US Treasury officials continued their hardline rhetoric on Iran's energy flows and the response around the Strait of Hormuz. Markets are watching a fresh escalation in geopolitical tensions across the Middle East.
Walter Bloomberg reported on X on May 4 that US Treasury Secretary Scott Bessent said China buys about 90% of Iran's energy and called on Beijing to join operations in the Strait of Hormuz.
Bessent said the US is prepared to respond if Iran escalates tensions. He added that the current situation is a temporary distortion that could normalize within weeks or months.
He also said the global oil market is facing a supply shortfall of about 8 million to 10 million barrels a day. Energy prices would fall quickly once the conflict ends, he added.
Bessent described Iran's economy as being in "free fall," signaling stronger pressure. He also said tariff revenue is still coming in at a significant level.
Markets are closely watching how Bessent's remarks could affect volatility in energy markets and global financial markets.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
