Hassett Projects Sharp Energy Price Drop 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 fall in a way Americans have not previously experienced.
Hassett declined to comment on ongoing diplomatic negotiations or military activity in the region, but said the reopening of the strategically vital waterway would have an immediate and significant effect on global energy markets.
Gas prices have already topped $4 per gallon in all 50 states as tensions tied to the Iran conflict continue to weigh on supply chains and crude oil flows through the Persian Gulf. The Strait of Hormuz is one of the world’s most critical energy chokepoints, with a substantial share of global oil and liquefied natural gas shipments passing through the narrow passage daily.
Hassett’s remarks signal that the administration views a resolution in the strait as a primary lever for delivering relief to American consumers at the pump.