11:47 AM EDT, 06/24/2026 (MT Newswires) -- US Treasury Secretary Scott Bessent said that the peace deal with Iran will pave the way for lower US inflation.

"Now that we are on the other side of this conflict, gas prices will come back down, inflation will come back to target," Bessent said following a speech at the Economic Club of New York on Tuesday night, according to media reports.

Consumer price inflation accelerated to 4.2% in May, the highest in about three years due to higher fuel prices resulting from the US-Iran conflict, according to government data.

The US and Iran agreed to halt fighting last week, reducing the risk of global oil supply disruption. US crude prices fell by more than 4% on Wednesday as tankers continued to transit the Strait of Hormuz.

Bessent also said he is confident that new Federal Reserve Chairman Kevin Warsh will successfully balance inflation control with economic growth, according to the report.

Last week, the central bank's Federal Open Market Committee maintained its interest rate in line with Wall Street's expectations, marking its fourth consecutive pause. It was the Warsh's first policy meeting as Fed chair.

President Trump understands that "bond markets have taken out more governments than howitzers," Bessent said. "I believe that he has complete confidence in the Fed chair to do the right thing," according to reports.

Bessent said in an interview on CNBC on Wednesday that US GDP growth can return to 3% by the end of the year as the Iran conflict winds down.

"We can have something with a three in front of it this year," Bessent said. "The underlying economy has been strong."