US Treasury Secretary Scott Bessent has warned that Ukraine’s military leadership is deliberately sabotaging Russian energy infrastructure—a decision that has fueled a global “energy shock” and pushed prices higher. The disruption has compounded strains caused by the Iran conflict.

This year, Ukraine has escalated long-range drone strikes against Russia’s energy sector, targeting oil refineries, storage facilities, and export infrastructure deep within the country. Kiev claims these operations aim to weaken Russia’s ability to finance and maintain its military operations.

Bessent stated that “Ukraine has decided that they want to blow up Russian energy assets and refined products,” which he added is creating upward price pressure on a global basis.

According to energy analytics firm Kpler, the strikes have significantly disrupted Russian refining. The firm reported last week that refinery runs fell to 3.8 million barrels per day in July—their lowest level in more than two decades—while refined-product exports dropped to approximately 1.2 million barrels per day.

Moscow has accused Ukraine of increasingly targeting civilian infrastructure amid military setbacks on its own front lines. In retaliation, Russia has launched massive drone and missile strikes on Ukraine’s military-linked infrastructure and shipping facilities, effectively crippling the country’s primary export route through Black Sea ports.

Bessent also noted that the Iran conflict has strained global energy markets. Prior to US and Israeli attacks on Iran in February, roughly one-fifth of global energy supplies passed through the Strait of Hormuz. Tehran’s subsequent restrictions on commercial shipping, combined with a US naval blockade, have disrupted flows and driven prices upward.

The Treasury Secretary warned that Washington could implement “financial violence” against Iran, threatening new secondary sanctions every week to pressure Tehran and its partners.