US energy secretary says oil prices may peak in next few weeks

US Energy Secretary Chris Wright said Monday that oil prices could peak in the coming weeks as disruptions to shipping through the Strait of Hormuz continue to drive energy costs higher.

“We’re going to see energy prices high – and maybe even rising – until we get meaningful ship traffic through the Strait of Hormuz,” Wright said at the Semafor World Economy conference in Washington, DC.

“That’ll probably hit the peak oil price at that time. That’s probably sometime in the next few weeks,” he said.

“Once the conflict (between the US and Iran) ends and energy starts flowing again, you’ll start to see downward pressure. But it will take some time,” he added.

“The president knew going into this that if you disrupt the flow of energy in the short term, you’re going to push up energy prices,” Wright said.

He added that expectations for a rapid drop in prices are unrealistic.

“By the summer is an aggressive timeframe,” Wright said, cautioning that any easing will take time even after energy flows resume.

Oil markets have surged since the US-Israeli war with Iran began on Feb. 28, with Tehran blocking access to the Strait of Hormuz to most foreign vessels.

In response, the US moved to enforce a naval blockade of Iranian ports after weekend talks in Islamabad, Pakistan aimed at ending the war collapsed, despite a Pakistani-mediated two-week ceasefire.

US Central Command (CENTCOM) said the blockade will be enforced impartially against vessels entering or departing Iranian ports across the Arabian Gulf and Gulf of Oman.