Asked how markets have been reacting to supply disruptions, Wright said "markets do what markets do," adding that prices have surged to "send signals to everyone that can produce more -- please produce more."

Wright told the annual CERAWeek conference in Houston that "prices have not risen high enough yet to drive meaningful demand destruction."

He stressed that Washington has taken "pragmatic solutions" to ease sanctions on oil that is already being shipped, allowing them to enter the market.

"But these are mitigants of a situation that's temporary," he stressed.

Wright added that the United States started releasing oil from its strategic reserves on Friday.

He added that the release, which was earlier announced, would reach around 1.5 million barrels a day out of US stocks, getting potentially close to three million barrels total.

More than 10,000 attendees are expected at the high-level energy gathering, which is this year dominated by oil and gas supply disruptions sparked by war.

US-Israeli strikes on Iran on February 28 triggered Tehran's retaliation that brought commercial shipping through the Strait of Hormuz to a virtual halt.

Around a fifth of global crude oil and liquefied natural gas passes through the critical waterway during peacetime, and US consumers are now facing average gasoline prices of nearly $4 per gallon.

Attacks on critical energy facilities in Iran, Qatar and other Gulf countries have exacerbated global oil and gas supply problems.

Oil prices tumbled Monday as President Donald Trump suddenly ordered a halt on strikes targeting Iranian infrastructure after "very good" talks -- although Tehran denied that negotiations had taken place.