WASHINGTON, D.C. — U.S. Treasury Secretary Scott Bessent said Friday that Washington’s policy decisions helped prevent global oil prices from surging to $150 per barrel, keeping them closer to $100 during a period of geopolitical tension.
Testifying before a Senate panel, Bessent said U.S. actions on sanctions and supply played a central role in stabilizing energy markets during an ongoing conflict.
“If we had not done that sanctions relief, they might have been at $150,” he said, adding that the global market remained “very well supplied.”
Bessent said the strategy was designed to protect not only American consumers but also key international partners.
“Just as you are concerned about gasoline prices for the American consumer and for our Asian allies, as are we,” he said.
His remarks reflect a broader U.S. approach that seeks to balance geopolitical pressure with the need to maintain stable global energy flows, particularly for major importers such as India.
Bessent also rejected claims that sanctions relief had significantly benefited adversaries like Iran or Russia.
“The $14 billion is a myth,” he said, disputing assertions that Tehran had gained substantial revenue.
He argued that maintaining supply at lower effective prices ultimately limited profits for producers.
“If Russia was selling their oil at a 20 percent discount, 100 percent of 100 is less than 80 percent of 150,” Bessent said.
Beyond energy policy, Bessent highlighted the Treasury Department’s focus on digital finance, pointing to new funding tied to the GENIUS Act and efforts to expand expertise in digital assets and global financial markets.
He said U.S. leadership in financial innovation is critical to maintaining the dollar’s global dominance, adding that digital assets could become “a very important payment rail.”
Domestically, Bessent emphasized a technology-driven overhaul of the Internal Revenue Service, describing a push to create a “digital-first agency.”
He said electronic filing rates have increased while processing costs have declined.
“Paper processing costs have gone from $45 million to $20 million,” he said.
The IRS is also using data tools to improve compliance, including proactively notifying taxpayers of potential audit risks.
“We actually can go back to a taxpayer and say that you will likely be audited — would you like to redo it in advance?” Bessent said.
He added that these measures are delivering stronger enforcement results even with reduced spending.
“We believe in outcomes,” he said, citing higher recovery rates.
Lawmakers raised concerns about the broader economic impact of administration policies.
Sen. Jack Reed warned that cuts to IRS enforcement could weaken revenue collection.
“Every dollar the agency invests in enforcement brings $11 back from tax cheats,” he said.
Reed also pointed to rising costs for consumers, saying Americans are “paying more at the pump and for other everyday necessities.”
Bessent pushed back on the criticism, arguing that increased spending does not necessarily lead to better results.
“We haven’t seen that… that more money equals better outcomes,” he said. (Source: IANS)
