WASHINGTON (TNND) — Treasury Secretary Scott Bessent said over the weekend that the Iran war will determine whether oil prices will decrease before the end of 2026.
During an interview with NBC News, host Kristen Welker asked Bessent if there was a chance oil prices would be lower by the end of 2026.
“Well, again, it will depend on what happens with the Iran conflict,” he answered Welker, according to The Hill newspaper.
Gas prices have been increasing due to the ongoing war in Iran. As midterms approach, some GOP candidates running for office have distanced themselves from President Donald Trump.
In the same interview, Bessent said that “core inflation is down.”
“The food is below the Fed’s targets,” Bessent said. “The prescription drugs have had the biggest decrease in history. Rents are down. So this is an energy shock. We will get to the other side of the Iran conflict, and those prices will come down.”
Former Trump White House economic adviser Steve Moore told The National News Desk last week that he expects inflation to remain above the Federal Reserve’s long-term target.
“I think we’re going to see a continuation of inflation in that 3.5% range, which is too high, as you know, and the Fed target rate is 2% or lower,” he said.
He also said that increased energy prices are one of the biggest obstacles to decreasing inflation.
“The reason I can feel pretty confident about that’s going to be the number is because the oil price continues to be between $90 and $100 a barrel,” Moore said.