Treasury Secretary Scott Bessent is betting billions that financial engineering can cool an overheating energy market, but analysts warn his “paper” intervention may trigger a chaotic “whipsaw” for global investors.

The Macro Gamble

As the conflict with Iran paralyzes the Strait of Hormuz, the U.S. Treasury is expected to announce an unprecedented measure to combat rising prices: shorting the oil futures market, as per a Reuters report.

The move reflects the “global macro” DNA of Secretary Bessent, a former Soros protégé, who is now attempting to use the Exchange Stabilization Fund to suppress a 21% surge in crude prices.

However, the strategy is meeting immediate skepticism from market veterans. Kevin Green, Senior Markets Correspondent at Schwab, labeled the move a potential “disconnect” from reality.

“This is hands down the biggest story of the day if the Treasury is about to start shorting futures to suppress prices,” Green noted. He warned the tactic would have “no real impact on the physical market” and could actually make conditions “worse for the physical market” by masking the true ...