WASHINGTON - The Obama administration on Tuesday welcomed Saudi Arabia's decision to fill any oil supply gap created by the loss of Iranian oil.
"I want to welcome very much the statements made by the Saudi authorities over the last couple of days that they will take further action to increase the supply of oil in global markets," US Treasury Secretary Timothy Geithner said.
"A very constructive signal," he told a US House of Representatives Financial Services Committee hearing to examine the state of the global financial system.
Pending US sanctions and a European oil embargo on Iranian oil have pushed the price of crude above $120 a barrel. Western sanctions are aimed at cutting Iran off from the global financial system in an attempt to curb its nuclear ambitions.