Low oil prices give President Donald Trump more leverage over Iran, U.S. Energy Secretary Chris Wright said Friday, speaking as the two adversaries teeter on the brink of another conflict.
“The world is very well supplied with oil right now, and I think it gives President Trump more leverage in his geopolitical actions to not worry about a crazy spike in oil prices,” Wright told CNBC in an interview when asked about the risk of a supply disruption due to tensions with Iran.
The oil market is closing monitoring tensions in the Middle East for any sign that crude supplies could be disrupted.
U.S. crude oil rose 26 cents, or 0.4%, to close at $63.55 per barrel Friday. Prices are up more than 10% since the start of the year, after losing 20% in 2025. Oil market analysts are generally expecting a surplus this year after OPEC+ increased output and as U.S. production remains strong.
Trump has deployed the USS Abraham Lincoln aircraft carrier strike group to the Middle East as he threatens Iran with military action if it does not negotiate over its nuclear program. The president threatened Iran with strikes in January during a mass uprising against the regime, but ultimately refrained.
U.S. and Iranian diplomats held negotiations over the Islamic Republic’s nuclear program in Muscat, Oman earlier on Friday. Iranian Foreign Minister Abbas Araghchi told state media that the talks were a “good start.”
Iran is an OPEC member and produces more than 3 million barrels per day.
Wright expects production in Venezuela to grow by several hundred thousand barrels per day this year, after the U.S. captured former President Nicolas Maduro early in January. The U.S. has seized control of Venezuela’s oil sales and President Trump is pressuring U.S. companies to rebuild its energy sector.
“It will be a substantial percent of global demand growth this year,” Wright said of output growth in the South American nation. “Venezuela is going to be another helpful stabilizer of energy markets.”