U.S. Energy Secretary Chris Wright warned oil traders not to expect a quick
resolution to tensions in the Strait of Hormuz and said Iran plans to propose a
shipping agreement to other Gulf states. He said reaching consensus with Iran
today is unlikely and markets will need to rely on alternative shipping routes,
which he estimates can currently move roughly 10 mln bpd of crude and petroleum
products. Wright said global oil supply is tighter than desired but not yet
critically tight. He added that Iran's nuclear program will end in some way,
that the U.S. prefers negotiations, but cautioned that if talks fail and Iran
pursues a covert weapons program it would face U.S. military action to prevent
nuclear development.
