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 once Iran reopens the Strait of Hormuz, a critical chokepoint for global oil shipments. Speaking publicly on the matter, Hassett said prices would fall at a magnitude unlike anything Americans have previously witnessed.
Hassett declined to detail the status of ongoing negotiations or military operations, but indicated the economic impact of reopening the strait would be swift and significant. All 50 states have recently surpassed $4 per gallon for gasoline as the conflict’s effects ripple through global energy markets.
The Strait of Hormuz carries roughly one-fifth of the world’s oil supply, making it one of the most strategically important maritime passages in global trade. Any disruption to transit through the strait typically produces immediate upward pressure on crude prices worldwide.
Hassett’s remarks signal the administration views Hormuz access as a key economic priority alongside any diplomatic or military resolution with Iran.