Treasury Secretary Bessent Says He Doesn't Understand Oil Price Surge; Rep. Khanna Fires Back 'Your Boss Started a Stupid War'

Treasury Secretary Scott Bessent faced criticism Thursday after saying he doesn't "really understand" the surge in oil prices, with Rep. Ro Khanna (D-Calif.) blaming President Trump's war with Iran for higher energy costs.

Scott Bessent Questions Oil Price Surge

Bessent made the remarks while discussing financial markets and the Treasury Department's efforts to restore balance to markets.

"Anything that happens in 24 hours is noise," Bessent told reporters, adding he was confident bond yields would continue to fall. "We had a spike in oil prices today, and I really don't understand it," he said.

He cited rising oil prices while also discussing the market impact of the Treasury's surprise announcement Wednesday of a bond buyback program.

Meanwhile, Brent crude futures rose 2.4% Thursday to settle at $93.78 per barrel, while West Texas Intermediate futures for October delivery gained 2.7% to $86.64.

Bessent argued that the administration's economic measures against Iran could ultimately push oil prices lower, saying: "Our statement is about economic action, and I think economic action will mean oil prices fall faster."

Treasury Secretary Scott Bessent: "We had a spike in oil prices today, and I really don't understand it."

— CSPAN August 20, 2026

Earlier this week, President Trump also warned that countries providing "any form of lifeline" to the Iranian regime would face "severe economic consequences."

Ro Khanna Blames Trump's Iran War

Khanna responded to Bessent's claim of not "really understanding" the oil price surge on X, writing: "I know why, Scott. Your boss started a stupid war without a plan, and Americans are paying the price."

I know why, Scott. Your boss started a stupid war without a plan, and Americans are paying the price.

— Ro Khanna August 20, 2026

Rep. Ted Lieu (D-Calif.) also weighed in, saying oil prices are high because Trump took an action that "starts with W and ends with R."

Hint: Oil prices are very high because Trump took an unconstitutional action that starts with W and ends with R.

— Ted Lieu August 20, 2026

Investor and hedge fund manager Spencer Hakimian likewise mocked Bessent, writing: "The Strait of America is closed. Hope this helps."

The Strait of America is closed.

Hope this helps.

— Spencer Hakimian August 20, 2026

Oil Prices Surge Amid Iran Tensions

The surge comes as the conflict with Iran continues to threaten energy supplies through the Strait of Hormuz, a critical waterway through which roughly 20% of the world's oil and liquefied natural gas typically transits.

In an interview with CNBC, Bessent said the U.S. would impose "the harshest sanctions in history" on Iran, pledging to explain the administration's economic strategy at a press conference Monday.

The U.S. and Israel launched strikes on Iran in February, claiming the goal was to prevent Tehran from developing nuclear weapons, an allegation Iran has repeatedly denied. Iran has retaliated by targeting Israel, U.S. bases, and Gulf Arab allies. Two ceasefires, reached in April and June, have since been repeatedly violated, while efforts to resume negotiations have stalled.