US energy secretary links lower fuel prices to Iran resolution

US energy secretary links lower fuel prices to Iran resolution

US Energy Secretary Chris Wright said reducing petrol and diesel prices will ultimately depend on reaching a resolution with Iran that allows more oil to move through the Strait of Hormuz, a key route for global energy supplies.

Speaking in California, Wright also called for increased domestic fuel production, arguing that the state’s energy security is important because dozens of military facilities rely on imported fuel.

He added that the Strategic Petroleum Reserve is expected to grow after the conflict, saying companies will return more oil than they borrowed.

“Each barrel we flow out, we’re getting 1.25 barrels back next year,” Wright said, adding that about 40 million barrels would be added to the reserve after the conflict at no cost to taxpayers.