Iran conflict driving temporary price pressures, says US treasury secretary
US Treasury Secretary Scott Bessent testified before the House Ways and Means Committee that recent fuel and consumer price increases linked to the Iran conflict are temporary, while Democratic lawmakers criticized the administration for failing to protect households from rising costs. Bessent argued that energy markets are stabilizing and long-term economic health remains strong, despite short-term volatility and political pushback over inflation and tariffs.
US Treasury Secretary Scott Bessent addressed concerns over rising fuel and consumer prices during a House Ways and Means Committee hearing on Thursday. He attributed recent price increases to the conflict involving Iran but insisted they were temporary, citing stabilizing energy markets and declining crude oil prices from recent highs. Bessent acknowledged that geopolitical tensions had disrupted energy markets but emphasized that underlying economic indicators like employment growth, private-sector investment, and rising wages remained positive. He noted that core inflation had declined since President Donald Trump’s return to office, framing the current volatility as short-term. Democratic lawmakers, including Ranking Member Richard Neal, challenged Bessent’s assessment, arguing that households faced mounting financial strain due to higher petrol prices, grocery bills, and tariffs. They linked the economic pressure to both the Iran conflict and trade policies, questioning the administration’s handling of inflation. Bessent defended the administration’s stance, stating that preventing Iran from acquiring nuclear weapons was a critical national security priority. He argued that long-term risks to global energy supplies and nuclear proliferation outweighed short-term economic disruptions for consumers. Republicans largely supported the administration’s position, focusing on national security, while Democrats continued to highlight the economic burden on Americans. The hearing underscored ongoing political divisions over how geopolitical tensions impact domestic costs ahead of future policy debates.
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