Energy Secretary Chris Wright says US military assets are focused on striking Iran, delaying promised naval escorts for oil tankers amid supply fears.
WASHINGTON: The US military is currently “not ready” to escort commercial tankers through the critical Strait of Hormuz because all its assets are focused on striking Iran, Energy Secretary Chris Wright said on Thursday.
Wright’s comments came as an attack on two oil tankers off Iraq killed at least one person and sent oil prices briefly soaring past USD 100 per barrel.
Since launching the war on Iran, US President Donald Trump has sought to calm markets by offering US Navy escorts for oil tankers and reinsurance facilities for shipping companies, but no such escorts have yet taken place.
“It’ll happen relatively soon, but it can’t happen now,” Wright told CNBC, adding that it was “quite likely” such escorts would begin by the end of the month.
He explained that all current US military assets are dedicated to destroying Iran’s offensive capabilities and the manufacturing industry that supplies them.
As Iran launches a new wave of attacks against Gulf energy targets, the International Energy Agency stated the war is creating the largest supply disruption in the history of the global oil market.
US and Israeli strikes on Iranian targets, including energy infrastructure, have further disrupted global supplies.
IEA member countries have agreed to unlock 400 million barrels of oil from their reserves in their largest-ever coordinated release.
The United States will be releasing 172 million barrels under a swap arrangement that would see 200 million barrels flow back into its Strategic Petroleum Reserve later, Wright confirmed.
However, this unprecedented stockpile release has been unable to overcome fears about the choking of energy supplies, with the Strait of Hormuz effectively shut down.
A fifth of the world’s globally traded crude oil normally passes through the strategic waterway.
Wright said he held meetings at the Pentagon on Thursday to discuss the possible implementation of US Navy escorts for tankers when military readiness allows.