Oil passes $100 a barrel as US energy secretary says Iran won't be a 'long-term war'
Pavel Mikheyev/Reuters
- Oil prices surpassed $100 a barrel on Sunday.
- The US energy secretary is working to reassure Americans that high gas prices won't last.
- Chris Wright said the conflict in Iran is a "temporary movement," rather than a "long-term war."
US Energy Secretary Chris Wright made the morning show rounds on Sunday to downplay concerns about surging gas and oil prices, assuring Americans that the war with Iran isn't "long-term."
Hours later, the price of a barrel of oil surged passed $100 for the first time in almost four years.
"What you are seeing is emotional reactions and fear that this is a long-term war," Wright told "Face the Nation" on CBS News. "This is not a long-term war. This is a temporary movement."
Wright made similar remarks in an interview with Fox News Sunday.
"The run-up on prices doesn't have anything to do with any shortage of barrels of oil or natural gas. It's just fear and perception, the unknown that this could be some long, drawn-out crisis, but it won't be," Wright said.
After the US and Israel launched airstrikes on Iran on February 28, the Islamic Republic moved quickly to shut down the Strait of Hormuz, a narrow waterway critical to the movement of oil around the world. About 20% of the globe's petroleum liquids pass through the Strait.
Although there are storage tanks across the Gulf, they are already nearing capacity after a week of conflict and limited shipping options, forcing producers to reduce operations. Iraq's oil output has shrunk by 60% since last week, Bloomberg reported. Other countries, like Kuwait and the United Arab Emirates, have also reduced output.
All of this means higher gas prices for Americans. The US Energy Information Administration says gas prices averaged $2.93 on February 23. By March 2, they were at $3.15. On Sunday, they were $3.40.
During his media tour on Sunday, Wright said regular ship traffic through the Strait of Hurmoz could resume in "a few weeks," meaning gas prices could ease sooner rather than later.
"We want it back below $3 a gallon, and it will be again before too long," Wright told CNN's "State of the Union." "You never know exactly the timeframe of this, but, in the worst case, this is a weeks, this is not a months, thing."