US Energy Secretary's Hormuz ultimatum to Iran: 'Right now, they are terrorizing the whole world'

US Energy Secretary Chris Wright evaluated developments in energy markets and tensions stemming from Iran in statements made to CNBC.

Addressing the effects of the conflict with Iran on global energy supply, Wright said, "While we are experiencing a temporary and significant disruption, eliminating the threat of Iran obtaining nuclear weapons means eliminating a threat that has lasted for decades to global energy markets, world peace, and prosperity. That is why President Trump is determined on this issue. Yes, in the short term, this situation causes a disruption, but to eliminate Iran's ability to obtain nuclear weapons and ensure that the US continues to increase production and supply, I think people understand that this is not a new situation. This is a bump in the road, and we will overcome it."

"EVERY COUNTRY, INCLUDING CHINA, IS AGAINST IRAN'S STANCE"

Stating that ensuring normalization in energy markets depends on Iran's approach, Wright said, "So, a large part of this issue depends on Iran. One way or another, we will see an end to Iran's nuclear program and free-flowing traffic in the Strait of Hormuz. Through a deal with Iran, this could happen relatively quickly. Every country in the world, including China, which is the largest buyer of Iranian oil and other oil coming from the Arabian Gulf, is against what Iran is doing."

"US OIL SHIPMENTS MAY INCREASE"

Answering a question about whether China will buy more oil from the US, Wright said, "Yes, of course, they will do so in the short term. They will continue to buy, and I think the amount of US oil will also increase. But ultimately, the world needs to open the Persian Gulf. Iran's attempt to hold the whole world hostage is, as people know, a temporary situation. We have moved three US Navy destroyers through there. We have escorted some tankers out. This is not the ideal way to do it. But if we have to do it, we will do it the same way. I think you will eventually see the Iranian regime under such intense economic and global pressure that they will stop this nonsense. Right now, they are terrorizing the whole world."

"ALTERNATIVE ENERGY ROUTES WILL BE ACTIVATED"

Pointing to the importance of new energy corridors that will reduce dependence on Iran, Wright said, "This is a card Iran can only play once. We will see an increase in pipeline capacity in Saudi Arabia and the United Arab Emirates. You know, there is an Iraqi pipeline that extends to Ceyhan, Turkey. We may also see a pipeline going to Jordan. There will be other routes for energy to get out of the Persian Gulf. I think the importance of the Strait of Hormuz will decrease, but the importance of the energy production and energy supply of these countries will not decrease."

News Source: İHA