Hassett Says Energy Prices Could Fall Sharply 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” once the waterway is back in operation.
Hassett declined to comment on active diplomatic negotiations or military strikes related to the situation, but indicated the economic impact of restoring passage through the strategically vital strait would be immediate and significant for consumers.
The Strait of Hormuz is one of the world’s most critical energy chokepoints, carrying a substantial share of global oil and liquefied natural gas shipments. Any disruption to its operations sends ripple effects through global energy markets. All 50 states have already topped $4 per gallon at the pump as the conflict with Iran continues to weigh on fuel prices.
Hassett’s remarks signal that the White House views the strait’s status as a primary driver of current elevated energy costs and anticipates swift relief for American consumers once access is restored.