WASHINGTON (Realist English). Low global oil prices are giving Donald Trump increased leverage in dealing with Iran, US Energy Secretary Chris Wright said Friday, as tensions between Washington and Tehran push both nations toward a potential confrontation.
“The world is very well supplied with oil right now, and I think it gives President Trump more leverage in his geopolitical actions,” Wright told CNBC in an interview, noting that lower prices reduce the risk of a disruptive spike even if supplies were threatened by conflict.
Global markets are closely monitoring the Middle East for any sign that crude flows could be interrupted. While oil prices have climbed in recent sessions amid renewed tensions and concerns about supply through the Strait of Hormuz, recent data point to broad market resilience. Other analysts have noted that talks — and the prospect of diplomatic engagement — can themselves put downward pressure on crude prices.
Trump has bolstered US military presence in the region, including deploying the USS Abraham Lincoln carrier strike group, and issued warnings of possible action if Iran does not engage constructively on its nuclear programme. Diplomatic talks between US and Iranian officials are underway in Muscat, Oman, with Tehran’s foreign minister describing the discussions as a “good start”.
Wright’s remarks come amid broader US energy policy developments, including efforts to refill the Strategic Petroleum Reserve, which the administration says would enhance the country’s ability to manage disruptions.
The current oil price environment — supported by strong supply, robust US production, and OPEC+ output — has limited the impact of geopolitical jitters on markets. While prices have rebounded modestly from earlier losses, they remain well below peaks seen in past Middle East crises.
Analysts say that abundant supply reduces the strategic vulnerability that often accompanies geopolitical flashpoints, potentially giving Washington more room to apply pressure on Tehran without risking immediate economic fallout. However, continued uncertainty over the trajectory of US-Iran relations and possible disruptions to Middle Eastern crude flows leaves markets on alert.