Scott Bessent Rejects Oil Markets Intervention As ‘Rumor,’ Points To Russian Sanctions Waiver As Short-Term Fix

Treasury Secretary Scott Bessent has officially dismissed speculation that the U.S. government will short oil futures to suppress surging energy prices, opting instead for a temporary easing of sanctions on stranded Russian crude to combat the supply shock stemming from the Iran-U.S. conflict.
Quashing Financial Intervention Rumors
Appearing on CNBC’s “Squawk Box” on Monday, Bessent firmly shot down reports that the Treasury Department planned an unprecedented intervention in the commodities market to cool prices.
“That rumor’s in the market,” Bessent told CNBC. “When there’s big dynamic price action, that always happens. We haven’t done that.”
The initial speculation, which drew sharp criticism from market experts like Michael McClain, an Alternative Investment Research Analyst at LPL Financial, warned of a potential “whipsaw” effect, suggesting the administration would use the Exchange Stabilization Fund to short the oil futures market.
However, Bessent questioned the legality and feasibility of such a move, stating, “I’m not sure under what authority or what auspices” the Treasury could execute …Full story available on Benzinga.com

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