Treasury Secretary Scott Bessent has said the United States is experiencing economic benefits as a result of President Donald Trump’s peace deals, and that oil prices could fall further if “something happens down in Venezuela.”
Speaking to Fox News’ Laura Ingraham about the economy on Thursday, Bessent said: “The peace deals; we are seeing a peace dividend from that. And I think there’s a very good chance that if something happens with Russia-Ukraine, if something happens down in Venezuela, that we could really see oil prices go down even more.
“Oil and gasoline prices are down substantially under President Trump—and that is really the key to affordability is lower energy. And energy goes into food prices.”
Newsweek has contacted the U.S. Department of the Treasury, via email outside of office hours, to ask what Bessent means by this.
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Why It Matters
The U.S. faces mounting tensions with Venezuela after carrying out more than 20 military strikes on alleged narco-boats carrying drugs in the Caribbean. The U.S. has also moved major military assets to the region.
Rising tension between the United States and Venezuela has implications for both global oil markets and U.S. domestic energy prices. Venezuela, despite an ongoing economic crisis, remains a significant oil exporter.
What To Know
Bessent was speaking to Ingraham about the economy, arguing that oil prices and their knock-on effects on energy could change how young people feel about the economy.
“Oil and gasoline prices are down substantially under President Trump—and that is really the key to affordability is lower energy,” he said. “And energy goes into food prices.”
He added: “I am very confident about job growth and the momentum that we’ve got for next year. And I think what it is going to take is for people to see, that the president has done peace deals, trade deals and tax deals.”
The United States has conducted over 20 military strikes on suspected drug-carrying vessels linked to Venezuela in the Caribbean and has deployed additional military assets to the region.
The intent, according to U.S. officials, is to counteract “narcoterrorism” and reduce criminal activity.
President Nicolás Maduro has said he is open to direct talks with the Trump administration while condemning U.S. actions as attempts at regime change and resource control.
Maduro denied U.S. accusations of cartel leadership and said sanctions were a primary cause of Venezuela’s ongoing economic and inflation crisis.
What People Are Saying
Defense Secretary Pete Hegseth told One America Network in an interview Thursday: “We know exactly who we are targeting, why we are targeting them, what they are carrying. The United States can track and hunt cells and narco-terrorists better than any country in the world.”
Venezuelan President Nicolás Maduro told CNN on November 13: “No more forever wars. No more unjust wars. No more Libya. No more Afghanistan.”
What Happens Next
The U.S official designation of the Venezuela-based Cartel de los Soles as a Foreign Terrorist Organization will take effect on November 24. The U.S. says the cartel is headed by Maduro, raising the prospect of possible U.S. strikes on Venezuela.
