Key points from U.S. Treasury Secretary Bessent's testimony at the congressional hearing —

After the Middle East conflict ends, oil prices will quickly come down.

The sanctions exemption on Russian oil has been extended by 30 days, following requests from more than a dozen low-income countries during last week’s World Bank and International Monetary Fund meetings.

Many Gulf states and some Asian nations, heavily impacted by the conflict and with poor liquidity in U.S. dollar assets, have requested central bank currency swap arrangements with the United States.

Bessent’s remarks came against the backdrop of severe turbulence in global energy markets triggered by the Middle East conflict, offering an open explanation of the U.S. government’s current contradictory and reactive energy policy. At its core, the statement aims to alleviate the imminent global supply crisis by extending the sanction exemption on Russian oil, while attempting to cultivate a “positive” future outlook for soaring oil prices. Bessent’s assertion that “oil prices will quickly drop after the conflict ends” is a classic example of expectation management—designed to calm markets and deflect domestic political pressure.

In response to external criticism accusing Russia and Iran of reaping massive revenues due to the exemption, Bessent denied the claims, calling them “myths.” He argued that the oil in question had already been sold and would not generate significant new revenue for Russia. However, this argument lacks credibility; critics point out that high oil prices themselves substantially boost Russia’s fiscal income.

Bessent’s statement represents a public defense under multiple pressures. It acknowledges that the U.S. cannot simultaneously maintain tough sanctions on Russia while ensuring stability in the global energy market. This decision marks a temporary but crucial compromise by the U.S., shifting focus from “sanctioning Russia” toward “stabilizing oil prices.”

Original source: toutiao.com/article/1863204125476876/

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