Bessent Says US Could Release More Oil From SPR

Summary

• US Treasury Secretary Scott Bessent suggests two potential tools to combat rising oil prices: unsanctioning Iranian oil already "floating at sea" and tapping the Strategic Petroleum Reserve (SPR) again.
• The potential release from the SPR follows a planned 172 million barrel release over the next four months, which has drawn concerns as the SPR is at about 60% capacity.
• The White House's stated priority is reopening the Strait of Hormuz, a critical oil transit chokepoint.
• Bessent appears to pressure Japan ahead of a visit, highlighting its mine-sweeping capabilities as potentially useful for securing the strait.
• A Pentagon briefing reiterates that recent U.S. strikes on Kharg Island targeted only military infrastructure, though Bessent's comments suggest it remains a potential target.
• The U.S. defends delaying a Trump-Xi summit as logistical, denying it's related to China's refusal to help secure the Strait of Hormuz.
• The overall market implication is potential downward pressure on oil prices from increased supply (Iranian oil, SPR) and efforts to secure key shipping routes.