Bessent: Treasury not intervening in oil commodities, lacks authority

U.S. Treasury Secretary Scott Bessent said the Treasury is not intervening in oil and other commodities markets and reiterated that it lacks statutory authority to conduct direct market bailouts. In an interview reported by Reuters, Bessent described global crude markets as well supplied and signalled that the administration would make a series of related announcements on energy measures.

Bessent told CNBC that “the crude markets are very well supplied” and pointed to large volumes of oil in transit away from the Gulf as a buffer against immediate shortages. The Reuters piece noted that oil prices rose roughly 1% on the day amid U.S.-Israeli strikes affecting Middle East supplies, but that the pace of gains moderated after comments about possible government steps to ensure safe passage for tankers.

Markets reacted to the twin messages—an acknowledgement of geopolitical risk and a denial of direct market buying—by paring some of the risk premium. Traders noted that while announcements on logistics, insurance or sanctions relief can influence flows, an explicit government programme to buy crude or futures would require legal authority and would be unprecedented. Short-term volatility eased, but analysts warn that further escalation in the region could still trigger sharp moves.

Bessent’s insistence that the Treasury does not have the authority to prop up asset prices echoes his congressional testimony on other markets, where he clarified that Treasury and the Financial Stability Oversight Council lack the legal power to “bail out” assets such as cryptocurrencies. Observers say that, under current law, the primary market enforcement and anti-manipulation remit in commodities rests with the Commodity Futures Trading Commission, not the Treasury.

Looking ahead, market participants expect the U.S. to rely on targeted measures—maritime security guarantees, insurance facilitation, sanctions adjustments and coordination with producers—rather than open-market purchases. Any move toward direct intervention in commodity prices would likely require congressional action or a clear shift in regulatory mandates, so investors should monitor policy statements and CFTC activity for further signals.