Bessent says Treasury is not intervening in oil commodities markets and has no authority to do so

Treasury Secretary Scott Bessent said Monday that the administration has no plans to intervene in financial markets and may not have the authority to do so even if it wanted.

In a CNBC interview, Bessent addressed rumors that the Treasury Department or some other arm of government might step in to try to lower oil prices.

While presidents, including President Donald Trump, have authorized releases or exchange loans from the Strategic Petroleum Reserve at times of stress in the energy sector, stepping into futures markets or using other mechanisms would be unprecedented.

The idea would be for the Treasury to intervene in oil futures markets — essentially trading against rising prices. Such a move would likely be controversial because it would involve targeting financial markets rather than the physical supply of oil.

“That rumor’s in the market,” Bessent told CNBC’s Brian Sullivan during a “Squawk Box” interview. “When there’s big dynamic price action, that always happens. We haven’t done that.”

Asked if it’s something under consideration, Bessent replied, “I’m not sure under what authority or what auspices.”

Oil prices calmed Monday, with U.S. crude trading 1.9% lower at $96.86 a barrel and international benchmark Brent crude nudging higher at $103.15.