Written by: Fatima Younis
US Energy Secretary Chris Wright announced that oil flows from the Gulf region have recovered about eighty percent of their levels prior to the outbreak of the conflict, confirming that reliance on alternative pipelines bypassing the Strait of Hormuz has contributed effectively to stabilizing supplies and securing the movement of global energy trade.
The diesel crisis and negotiations with Europe
Regarding the global diesel crisis, the US Energy Secretary revealed that there are ongoing negotiations between the United States and European countries aimed at releasing large strategic reserves of diesel fuel, describing the pace of the European side's response as slow. This comes in light of the agreement reached on supplying Russian diesel fuel to global markets, where the US Treasury Department has issued a general license allowing purchases until April 7 of next year, while emphasizing that any easing of sanctions on Russian exports will be limited exclusively to diesel fuel.
Iranian threats and securing supplies
On another note, the US official addressed the Iranian file, emphasizing the US administration's commitment to preventing Tehran from possessing a nuclear weapon, and considering that Washington has succeeded through its current strategy in depriving the Iranian side of using the economic pressure card via the threat of closing the sensitive waterway in the Gulf. These developments reflect the ongoing efforts by regulatory and international bodies to contain the repercussions of geopolitical crises on global energy markets, and ensure the continued flow of vital supplies to consumer and industrial markets without interruption.
