Finance
Oil unlikely to hit $200 a barrel, US energy chief says
Published by Global Banking & Finance Review®
Posted on March 12, 2026
2 min readLast updated: March 12, 2026
Quick Summary
U.S. Energy Secretary Chris Wright says oil prices are unlikely to reach $200/barrel despite disruptions in the Strait of Hormuz and ongoing conflict. Markets have recently seen oil spike above $100 but retreated amid strategic reserve actions and easing tensions.
Oil unlikely to hit $200 a barrel, US energy chief says
US Energy Secretary Comments on Oil Price Surge Amid Middle East Tensions
By Timothy Gardner and Susan Heavey
Current Situation in the Strait of Hormuz
WASHINGTON, March 12 (Reuters) - U.S. Energy Secretary Chris Wright said on Thursday global oil prices are unlikely to hit $200 a barrel even as crude tankers remained stalled in the Strait of Hormuz and the U.S. and Israeli war with Iran widened.
Statements from US and Iranian Officials
"I would say unlikely, but we are focused on the military operation and solving a problem," Wright told CNN when asked if prices would reach $200 a barrel - a level prices could hit if the war continues to escalate, an Iranian official said on Wednesday.
"Get ready for the oil barrel to be at $200 because the oil price depends on the regional security which you have destabilized," Ebrahim Zolfaqari, the spokesperson for Tehran's Khatam al-Anbiya military command headquarters, said on Wednesday.
Market Reaction and Oil Price Movements
Oil prices jumped 6% to nearly $100 on Thursday as two tankers blazed in an Iraqi port after a hit by suspected Iranian explosive-laden boats.
International Response and Oil Reserve Drawdown
The rise came despite more than 30 countries in the International Energy Agency announcing a day earlier the biggest-ever coordinated drawdown of global oil reserves of 400 million barrels, about 40% of which will come from the U.S., the world's largest oil producer.
Impact on Global Oil Supply
The war has forced Middle East Gulf countries to cut total oil production by at least 10 million barrels per day, about 10% of world demand. The IEA said on Thursday that is the biggest oil supply disruption in the history of the global market.
US Navy Operations in the Region
Wright also told CNBC on Thursday that the U.S. Navy cannot escort ships through the Strait of Hormuz now but it was "quite likely" that could happen by the end of the month.
(Reporting by Susan Heavey Timothy Gardner and Katharine Jackson; Editing by Sharon Singleton and Michelle Nichols)
Key Takeaways
- •Wright downplayed the likelihood of oil hitting $200/barrel, calling it “unlikely” while focusing on military and logistical solutions.
- •Oil prices surged past $100/barrel earlier this month amid disruptions in the Strait of Hormuz—including drone attacks and shipping stoppages—but later retreated to the $80–90 range as strategic reserve releases and diplomatic signals eased market fears.
- •Analysts and agencies forecast Brent crude averaging $60–80/barrel in 2026, with the U.S. Energy Information Administration projecting a decline from above $95 in the near term to below $80 by third quarter 2026.
Frequently Asked Questions about Oil unlikely to hit $200 a barrel, US energy chief says
1Will oil prices reach $200 a barrel due to the Strait of Hormuz crisis?
According to US Energy Secretary Chris Wright, oil prices are unlikely to reach $200 a barrel even with current tensions.
2What is causing delays in crude tanker movement in the Strait of Hormuz?
Crude tankers are stalled in the Strait of Hormuz as a result of the US and Israeli war with Iran.
3Is the US Navy escorting ships through the Strait of Hormuz?
Currently, the US Navy is not escorting ships, but it could begin doing so by the end of the month.
4What did an Iranian official say about potential oil prices?
An Iranian official suggested oil prices could reach $200 a barrel if the conflict continues to escalate.
