US Energy Chief Doubts $200 Oil

U.S. Energy Secretary Chris Wright stated on Thursday, March 12, 2026, that global oil prices are unlikely to reach $200 per barrel, despite ongoing disruptions in the Strait of Hormuz and an escalating conflict involving the U.S., Israel, and Iran. This assessment comes as crude tankers remain stalled and an Iranian official warned of potential $200 prices if the conflict intensifies.

Oil prices surged 6% to nearly $100 per barrel on Thursday after two tankers were attacked in an Iraqi port by suspected Iranian explosive-laden boats. This increase occurred despite a coordinated drawdown of 400 million barrels from global oil reserves by over 30 International Energy Agency countries, with 40% contributed by the U.S.

The conflict has led Middle East Gulf countries to reduce total oil production by at least 10 million barrels per day, representing approximately 10% of global demand. The IEA reported this as the largest oil supply disruption in market history. Wright also indicated that while the U.S. Navy cannot currently escort ships through the Strait of Hormuz, this capability is "quite likely" by the end of the month.