**Ukrainian Attacks on Russian Energy Infrastructure Contribute to Global Energy Crisis, Says US Treasury Secretary**
In a recent interview, US Treasury Secretary Scott Bessent highlighted the significant impact of Ukrainian attacks on Russian energy infrastructure, stating that these actions have contributed to a global "energy shock" and increased prices worldwide. Bessent's comments come amidst a backdrop of intensified long-range drone strikes by Ukraine targeting key components of Russia's energy sector, including oil refineries, storage facilities, and export infrastructure.
Bessent explained that Ukraine's strategy is aimed at undermining Russia's capacity to finance its military operations. "Ukraine has decided that they want to blow up Russian energy assets and refined products," he stated, emphasizing that this strategy is creating upward price pressures on a global scale.
The energy analytics firm Kpler has reported significant disruptions in Russian refining activities, noting that refinery runs fell to approximately 3.8 million barrels per day in July, marking the lowest level in over two decades. Additionally, refined-product exports from Russia have also seen a decline, dropping to around 1.2 million barrels per day from 2.3 million a year earlier.
Bessent's remarks also pointed to the broader context of global energy pressures, particularly referencing the ongoing conflict in Iran. He noted that prior to the US and Israeli military actions against Iran in February, about 20% of global energy supplies transited through the Strait of Hormuz. The subsequent restrictions imposed by Tehran on commercial shipping, combined with a US naval blockade, have further strained energy flows and contributed to rising prices.
In response to the situation, the US has intensified economic measures against Iran, with Bessent warning of potential "financial violence" against Tehran. He indicated that the US government is prepared to implement new secondary sanctions weekly against Iran and those conducting business with the country.
As the conflict continues, both Ukraine and Russia have escalated their military strategies, with Russia accusing Ukraine of targeting civilian infrastructure in retaliation for setbacks on the battlefield. Moscow has responded with extensive drone and missile strikes aimed at Ukraine's military-related infrastructure and shipping facilities, which have severely impacted Ukraine’s main export routes through the Black Sea.
The interplay between the conflicts in Ukraine and Iran has created a complex landscape for global energy markets, further complicating the situation for consumers and economies worldwide. As nations grapple with rising energy costs, the repercussions of these conflicts are likely to be felt for some time.