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. Hassett stopped short of discussing active negotiations or military strikes but indicated the economic impact of a reopened strait would be swift and significant.
“As soon as the straits are open,” Hassett said in public remarks, prices would fall at a scale Americans have not previously witnessed.
The comments come as all 50 states have seen gas prices exceed $4 per gallon amid the ongoing conflict with Iran and its effects on global energy markets. The Strait of Hormuz handles a substantial share of the world’s seaborne oil traffic, making any disruption there a direct driver of fuel costs for American consumers.
Hassett did not provide a timeline for when the strait might reopen or offer specifics on the status of diplomatic efforts.