Treasury Secretary Timothy Geithner Thursday said aspects of the economic recovery so far has been encouraging but the U.S. still faces a "dangerous and uncertain world" marked by high oil prices and an ongoing struggle with Iran over its nuclear program.

"Americans are feeling the effects of higher gas prices. There is no quick and easy fix to this problem, but it reinforces the need for more progress to develop additional sources of energy of all forms," Geithner said in remarks prepared for an Economic Club of New York dinner.

Tensions between Iran and the west over Tehran's nuclear program, have pushed U.S. crude prices 11% higher since November as traders fretted that Iran could move to disrupt supplies traveling through the nearby Strait of Hormuz, through which a third of the world's seaborne crude passes.

"The world is engaged in a critical struggle with Iran, which is adding to upward pressure on oil prices," Geithner said.

The Treasury secretary last month said there could be a case for releasing oil from the nation's emergency stockpile. The White House earlier Thursday denied a report that it had reached an agreement to release oil from the Strategic Petroleum Reserve.

In his remarks Thursday, Geithner also launched into campaign mode, reminding the audience that they face "fundamental choices about politics and economics" ahead of this year's presidential election.

-By Jeffrey Sparshott; Dow Jones Newswires; 202-862-9291; jeffrey.sparshott@dowjones.com

--David Bird contributed to this article.