The US pledges not to target Iran’s oil and gas industry amid war with Israel, aiming to calm fears of a prolonged global energy crisis.
NEW YORK: The United States has pledged not to target Iran’s energy infrastructure in its ongoing conflict with the Islamic republic, which is allied with Israel.
Energy Secretary Chris Wright told CNN that disruptions to global oil and gas supplies would be short-lived, stating “worst case, that’s a few weeks. That’s not months.”
He explicitly ruled out strikes on Iran’s core energy assets. “The US is targeting zero energy infrastructure,” Wright said.
“There are no plans to target Iran’s oil industry, their natural gas industry, or anything about their energy industry.”
The conflict has severely disrupted the Strait of Hormuz, a vital chokepoint for global energy. Nearly 20% of the world’s crude oil and a similar proportion of liquefied natural gas usually transit through the strait.
This disruption has roiled energy markets, sending oil prices soaring. The US benchmark, West Texas Intermediate, rose 12% on Friday alone and is up 36% over the past week.
Wright sought to downplay the impact of recent Israeli strikes on Iranian fuel depots. “These are Israeli strikes, these are local fuel depots to fill up the gas tank,” he said.
He argued the price spike was driven by fear, not fundamentals. “They shouldn’t go much higher than they are here because the world is very well supplied with oil,” Wright told CBS.
“There’s no energy shortage in all of the Western hemisphere.”
The price surge is already hitting consumers. US insurer AAA reported gasoline prices at the pump have risen 16% in a week, with diesel up 22%.
The website GasBuddy noted diesel fuel had not been this expensive since February 2023. Rising fuel costs are a sensitive political issue in the US, especially with mid-term elections approaching in November.
Wright reiterated his belief the crisis would be brief. “What you’re seeing is emotional reactions and fear that this is a long term war,” he said.
“This is not a long-term war.”
The US is now negotiating with shipping companies to restore traffic through the Gulf. “Early tankers probably will involve some direct protection by the US military” to navigate the Strait of Hormuz, Wright said.
He predicted maritime traffic would return to normal “relatively soon.”
Iran accounts for roughly 4% of global oil production, according to the US Energy Information Administration. While under international sanctions, Iran still exports oil, primarily to China.
In response to the price surge, the US is considering measures to increase global supply. Treasury Secretary Scott Bessent said Friday the government was weighing lifting more sanctions on Russian oil.
This followed a temporary authorisation for India to buy oil from Moscow. The US International Development Finance Corporation also announced a new reinsurance mechanism of up to USD 20 billion.
This fund is designed to cover risks for vessels travelling through the Strait of Hormuz.