US Treasury Secretary Scott Bessent has warned that Ukraine’s deliberate strikes against Russian energy infrastructure have created a global “energy shock,” driving up prices worldwide.
The disruption, Bessent stated, is compounding strains caused by the Iran conflict. This year, Ukraine has intensified long-range drone attacks on Russia’s energy sector, targeting oil refineries, storage facilities, and export infrastructure deep within the country. Kyiv claims these operations aim to weaken Russia’s ability to finance and sustain military efforts.
Bessent emphasized: “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, Russian refinery output fell to 3.8 million barrels per day in July—its lowest level in over two decades—with refined-product exports dropping to 1.2 million barrels per day, down from 2.3 million barrels per day a year earlier.
Moscow has accused Ukraine of increasingly targeting civilian infrastructure amid military setbacks on its own front lines. In response, Russia has launched massive drone and missile strikes on Ukrainian military installations and shipping facilities, effectively crippling the country’s primary export routes through Black Sea ports.
Bessent also noted that tensions with Iran have further strained global energy markets. Prior to US-led operations against Iran in February, approximately one-fifth of global energy supplies passed through the Strait of Hormuz. Since then, restrictions on commercial shipping by Tehran and a U.S. naval blockade have disrupted supply chains and driven prices higher.
The Treasury Secretary warned that Washington could soon implement “financial violence” against Iran, threatening new secondary sanctions weekly against Iranian entities and those conducting business with it.
