HOUSTON – The U.S. military is escorting ships carrying about 7 million barrels per day of crude oil and petroleum products through the Strait of Hormuz, Energy Secretary Chris Wright said Friday.
That amount would bring oil supplies passing through the Strait of Hormuz to about half of what they were before the United States and Israel began attacking Iran in February. The amount being escorted out of the area is increasing, added Wright, who was speaking at the Bloomberg Energy Security Summit in Houston.
About 20 million barrels of oil a day crossed the Arabian Gulf through the strait before the war, Wright said. About 5 million of that flow has moved to pipelines and other transportation options, and global output has increased by about 1 million, he added, leaving a gap of 14 million barrels.
“The flows today are close to half the gap, and increasing,” Wright said at the event.
The situation of the war between the United States and Iran has become increasingly dark, as President Donald Trump said earlier this week in the United Stateswill carry out more military attacks against the country,then returned to the ideathen indicated that a deal could be signed this weekend and more recently said Iranian negotiators were“very rude people to deal with.”
The surge in oil and gasoline prices that followed Iran’s blockade of Hormuz has rattled the Trump administration and Republicans who hope to retain control of Congress after what is likely to be a midterm election dominated by voters’ concerns about the high cost of living.Inflation reached 4.2 percent in MayThe Labor Department reported earlier this week, driven by higher energy prices.
The naval escort shows the administration is achieving its dual goals of controlling energy prices while also preventing Iran from acquiring a nuclear weapon, Wright said.
“We live with high energy prices,” he said. “People don’t think about these long-term issues.”
The administration is looking at other options, including another drawdown from the Strategic Petroleum Reserve, Wright said. A gas tax holiday is “possible” he added, although it would require congressional action.
“There is balance in all these issues,” he said. “The ultimate goal is lower costs for all Americans.”
