Bessent: We think countries will look to diversify away from Middle East for energy

Geopolitical risk is forcing a global energy supply chain rethink. Expect a structural diversification away from the Middle East towards stable suppliers, with the US as the primary beneficiary. A potential US-China trade détente is forming around this theme: US untariffs non-strategic Chinese goods (e.g., fireworks) in exchange for China buying more US energy. This is a pragmatic quid pro quo, not a strategic reset. The core trade is long US energy on a secular demand shift.

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Bessent: We think countries will look to diversify away from Middle East for energy

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Not only China, but countries all around the world are going to look to diversify away from the Middle East for more stable source of energy and what better place than the US. Increased global demand for US energy exports, driven by geopolitical instability in the Middle East, will support higher oil prices.

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4/16/2026 11:30:19 PM	short term cautious down	5 days later	+10.86%	-5.43%

Scott Bessent

We're going to form a board of trade for non-critical, non-strategic areas that the US doesn't want to make and will never reshore, like fireworks or very low-end consumer goods that will keep coming from China no matter what.

We can untariff those items, and there are many things China wants to buy from us in return.
Scott Bessent

There was talk today about the Chinese buying more US energy, and given what's going on in the Middle East, we think that not only China but countries all around the world will look to diversify away from the Middle East for more stable sources of energy.

What better place than the US?

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