Hassett Says Energy Prices Will Fall Sharply Once Strait of Hormuz Reopens
National Economic Council Director Kevin Hassett predicted a dramatic decline in energy prices if Iran reopens the Strait of Hormuz, saying costs would drop in a way Americans have not previously witnessed.
Hassett declined to discuss the specifics of ongoing diplomatic negotiations or military activity in the region, but he made clear that restoring access through the strait would have an immediate and significant effect on energy markets.
The Strait of Hormuz is one of the world’s most critical oil transit chokepoints, carrying a substantial share of global petroleum exports. Any prolonged disruption to shipping through the waterway places upward pressure on crude oil prices worldwide. All 50 states have already crossed the $4-per-gallon threshold for gasoline as the conflict with Iran continues to affect fuel costs across the country.
Hassett’s comments signal that the administration views restoring the strait’s access as a key lever for bringing down consumer energy costs in the near term.