Bessent said the US could lift Iranian oil sanctions to curb price increases
Treasury Secretary Scott Bessent said in an interview on Fox News that releasing sanctions-imposed Iranian oil could ease prices as global markets tighten.
Treasury Secretary Scott Bessent said in a new interview that “sometimes we need to de-escalate” as President Donald Trump ramps up his threats against Iran, but assured Americans the government has “deep pockets” to fund the ongoing wars in the Middle East.
“Meet the Press” host Kristen Welker asked Bessent about the president’s threat to target Iranian power plants and other resources unless the Strait of Hormuz, critical to the world’s oil supply, is “fully opened.” The president’s comments came a day after he spoke of “de-escalating” the war.
“Let me put a fine point on this: Is the president trying to end this war or is he trying to escalate the conflict?” Welker asked in a March 22 interview.
“They are not mutually exclusive,” Bessent replied. “Sometimes you have to de-escalate to de-escalate, Kristen.”
Bessent also ruled out pushing for tax increases to finance the war.
The U.S. military’s request for $200 billion in additional funding for the Iran war faces fierce opposition in Congress, with Democrats and even some Republicans questioning its necessity after last year’s massive defense spending.
Bessent defended the request without confirming the amount.
President Trump has not yet sent a request to the House and Senate to approve this amount, and the Trump administration has made clear that the figure is subject to change.
“We have plenty of money to fund this war,” Bessent told NBC News. “This is complementary. President Trump is building up the military now in his second term, just as he did in his first term, and he wants to make sure that it continues to be well-supplied.”
Defense Secretary Pete Hegseth said last week that the additional funding is needed “to ensure we have adequate funding for what has been done and what we must do in the future.”
He dismissed questions about possible tax increases as “ridiculous” and said they were “not considering it at all.”
Early signs suggest this war will be the most costly for the United States since the long-running conflicts in Iraq and Afghanistan. Administration officials told lawmakers the first six days of the Iran war cost more than $11 billion.
The Republican-led Congress has already approved record funding for the military since President Trump’s second term began in January 2025. Last month, Trump signed the Fiscal Year 2026 National Defense Appropriations Act, which provides approximately $840 billion in funding.
And last summer, over Democratic opposition, the Republican-led Congress passed a major tax cut and spending bill that included $156 billion in defense spending.
Bessent also defended the Trump administration’s moves in recent days to lift sanctions on Iranian and Russian oil. He argued that this would allow countries other than China, including Japan and South Korea, to buy oil, while also preventing oil prices from skyrocketing to $150 per barrel and reducing the total revenue received by Iran and Russia.
He said the Treasury Department’s analysis showed that the maximum amount of additional oil revenue Russia could receive would be $2 billion.
