US Energy Secretary Reportedly Says 'We're Simply Not Ready' For Navy Escorts Of Tankers Via Hormuz Strait – Oil Crosses $100/BBL Again

• Chris Wright added that crude oil prices are unlikely to reach $200 per barrel.
• The Energy Secretary’s comments come after Iran warned that global crude oil prices could soar to $200 due to the war, according to a report by Reuters.
• Iran has struck multiple oil tankers in the region, with one of the recent attacks being on a U.S.-owned vessel near Iraq.

U.S. Energy Secretary Chris Wright reportedly stated that the United States’ Navy is not ready yet to escort oil tankers through the Strait of Hormuz amid an intensifying Iran war.

“We’re simply not ready. All of our military assets right now are focused on destroying Iran’s offensive capabilities and the manufacturing industry that supplies their offensive capabilities,” Wright said during an interview with CNBC, while adding that it will happen relatively soon.

Wright’s comments come at a time when crude oil prices have soared past the $100 per barrel mark once again. U.S. West Texas Intermediate (WTI) crude futures maturing in April soared nearly 10%, rising to $95.26 per barrel before shedding some of the gains. Brent crude futures expiring in May surged more than 10% to $101.53 before losing some steam to hover around $100 a barrel.

The United States Oil Fund ETF (USO) gained 7%, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) was up about 6% at the time of writing.

Oil Unlikely To Hit $200, Says Wright

Wright added that crude oil prices are unlikely to reach $200 per barrel. “We are focused on the military operation and solving a problem,” he said.

The Energy Secretary’s comments come after Iran warned that global crude oil prices could soar to $200 due to the war, according to a report by Reuters.

“Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilized," said Ebrahim Zolfaqari, spokesperson for Iran's military command, IRGC.

Iran has struck multiple oil tankers in the region, with one of the recent attacks being on a U.S.-owned vessel near Iraq.

On Thursday, Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned against any aggression toward the country’s islands.

IEA Warns Of ‘Largest Supply Disruption’

Meanwhile, the IEA warned of the “largest supply disruption” in the global oil market amid a near-halt in traffic through the Strait of Hormuz, which otherwise accounts for nearly a fifth of global crude oil shipments.

“Widespread flight cancellations in the Middle East and large-scale disruptions to LPG supplies are expected to curb global oil demand by around 1 mb/d during March and April compared to previous estimates. Higher oil prices and a more precarious outlook for the global economy pose further risks,” the agency said.

Meanwhile, U.S. equities declined in Thursday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.88%; the Invesco QQQ Trust ETF (QQQ) fell 1.08%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.95%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘bearish’ territory.

Also See: Iran Warns Aggression Toward Its Islands Will 'Shatter All Restraint' – Analysts Explain Why Oil Is Boiling Despite Record 400M Barrel Release

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