West Asia crisis: White House says oil price surge driven by ‘fear premium’, expects relief in weeks 

The White House moved to calm public concerns over rising fuel costs on March 8, describing the recent surge in oil prices as a temporary market reaction tied to tensions involving Iran. 

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Speaking on State of the Union on CNN, United States Secretary of Energy Chris Wright said the spike reflects a “fear premium in the marketplace” rather than a long-term supply shock. He suggested the volatility is likely to be short-lived even in a worst-case scenario. 

“We never know exactly the timeframe of this,” Wright said. “But in the worst case, this is weeks, this is not a months thing.” 

Earlier in the day, Wright had downplayed concerns about the Strait of Hormuz closure amid the conflict in Iran. 

“One large tanker has already gone through the straits with no issues at all. So as the general just described, we’re massively attiring their ability to strike with missiles and drones, and that rate of attrition will increase in the coming days,” Wright said during an appearance on Fox News. 

“So we’ll be cautious. We’ll be careful, but energy will flow soon,” he added.

Administration officials say markets are reacting to uncertainty around the escalating confrontation with Tehran and potential disruptions to global energy flows. However, Wright stressed that current price movements are driven largely by risk perceptions rather than an immediate collapse in oil supply. 

Separately, Karoline Leavitt, the White House press secretary, echoed that message during an appearance on Fox News, describing the increase in fuel prices as a “short-term disruption.” She argued that the situation could ultimately strengthen the US energy sector. 

“But ultimately taking out the rogue Iranian regime is going to be a good thing for the oil industry,” Leavitt said, adding that prices are expected to fall again as the administration’s energy strategy expands domestic production. 

Leavitt credited Donald Trump’s “American energy dominance” agenda for keeping long-term supply outlooks strong, saying increased US production should help stabilize prices after the current bout of geopolitical volatility. 

Energy markets have been closely watching developments in the Middle East, where tensions have raised concerns about potential disruptions to shipping routes and oil infrastructure, contributing to the current surge in crude prices.