Hassett Says Energy Prices Will Fall Sharply Once Strait of Hormuz Reopens
National Economic Council Director Kevin Hassett projected a dramatic decline in energy prices if Iran reopens the Strait of Hormuz, saying costs would drop in a way Americans have never witnessed. Hassett declined to comment on the specifics of ongoing negotiations and military strikes, but said the reopening of the strait would be a major catalyst for relief at the pump.
The Strait of Hormuz is one of the world’s most critical oil transit chokepoints, and its restricted status has contributed to elevated energy costs across the United States. All 50 states have recently topped $4 per gallon for gasoline as the effects of the Iran conflict continue to ripple through domestic fuel markets.
Hassett’s remarks signal that the administration views the strait’s status as a key variable in its broader energy and foreign policy strategy, with a resolution potentially delivering significant economic relief to American consumers.