US Energy Chief Says Oil Unlikely to Reach $200 a Barrel

U.S. Energy Secretary Chris Wright said it is unlikely that crude oil prices will climb to $200 per barrel, despite mounting geopolitical tensions in the Middle East that have rattled global energy markets. Wright noted that recent increases in oil and gasoline prices are largely driven by geopolitical risks but are not expected to result in a sustained price shock.

His comments come after Iranian officials warned that escalating conflict involving the United States and its allies could push oil prices dramatically higher. Ebrahim Zolfaqari, spokesperson for Iran’s Khatam al-Anbiya military command headquarters, said oil could reach $200 per barrel if regional security continues to deteriorate, particularly around the Strait of Hormuz. The strategic waterway handles a significant portion of global oil shipments.

Washington, however, believes global supply disruptions are unlikely to reach levels that would drive prices to such extremes. Wright suggested that the current spike may prove temporary as markets adjust and energy supply remains relatively resilient, including strong U.S. production capacity.

Meanwhile, the International Energy Agency (IEA) and its member countries have announced plans to release around 400 million barrels of oil from strategic reserves. The move is aimed at stabilizing global markets and easing price pressures triggered by the geopolitical crisis.