Hassett Says Energy Prices Will 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, a critical shipping corridor for global oil supplies. Hassett said prices would fall at a scale Americans have not previously witnessed.
Speaking publicly on the matter, Hassett declined to detail ongoing diplomatic negotiations or military activity in the region, but said the economic impact of reopening the strait would be swift and significant.
The comments come as energy costs remain elevated following military tensions with Iran. All 50 states have seen gasoline prices exceed $4 per gallon in recent weeks, a direct consequence of disruptions tied to the conflict’s effect on regional oil flows.
The Strait of Hormuz is one of the world’s most strategically important energy chokepoints, with roughly 20 percent of global oil supply passing through it. Any sustained closure or threat to the waterway places upward pressure on crude prices worldwide.