Hassett Forecasts Sharp Energy Price Drop Once Strait of Hormuz Reopens
National Economic Council Director Kevin Hassett predicted a dramatic decline in energy prices once Iran reopens the Strait of Hormuz, saying costs would fall “like nothing you’ve ever seen before.”
Hassett declined to detail ongoing diplomatic and military developments, but said the reopening of the strategic waterway would be the key trigger for relief at the pump. The Strait of Hormuz is one of the world’s most critical oil transit chokepoints, with a significant share of global petroleum shipments passing through the narrow passage between Iran and Oman.
All 50 states have already crossed the $4-per-gallon threshold for gasoline as the conflict with Iran has disrupted shipping lanes and driven up crude prices. Hassett’s remarks signal the administration believes resolution of that bottleneck would be the fastest path to energy cost relief for American consumers.
No timeline for the strait’s reopening was provided.