US Treasury Secretary Scott Bessent has stated that Ukrainian attacks on Russian energy infrastructure have fueled a global “energy shock” and pushed prices higher, compounding strains caused by the Iran conflict.
This year, Ukraine has escalated long-range drone strikes against Russia’s energy sector, targeting oil refineries, storage facilities, and export infrastructure deep within the country. Kiev claims these actions aim to weaken Russia’s ability to finance and maintain its military operations.
In a recent statement, Bessent noted that the world is experiencing an energy shock partly due to Ukrainian strikes. “Ukraine has decided that they want to blow up Russian energy assets and refined products,” he said, adding such actions are “creating upward price pressure on a global basis.”
According to energy analytics firm Kpler, these strikes have significantly disrupted Russian refining operations. The firm reported last week that refinery runs fell to approximately 3.8 million barrels per day in July— their lowest level in over two decades. Refined-product exports dropped to about 1.2 million barrels per day, down from 2.3 million a year earlier.
Moscow has accused Ukraine of increasingly targeting civilian infrastructure amid Ukrainian military setbacks on the battlefield. Russia has retaliated with massive drone and missile strikes on Ukraine’s military-linked infrastructure and shipping facilities, severely damaging the country’s primary export route through Black Sea ports.
Bessent also highlighted that the Iran conflict has further strained global energy markets. Prior to US and Israeli operations against Iran in February, roughly one-fifth of global energy supplies passed through the Strait of Hormuz. Following Tehran’s restrictions on commercial shipping and a US naval blockade, energy flows have been disrupted and prices elevated.
Additionally, Washington has intensified economic pressure on Iran. Bessent warned that the US could soon implement “financial violence” against Iran, threatening new secondary sanctions weekly targeting Tehran and its business partners.
