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, saying costs would fall in a way Americans have not previously witnessed.
Hassett stopped short of commenting on active negotiations or ongoing military activity in the region, but tied the price outlook directly to the strait’s reopening. The Strait of Hormuz is one of the world’s most critical oil transit chokepoints, through which a substantial share of global petroleum exports passes.
Gas prices have already climbed above $4 per gallon in all 50 states as disruptions tied to the Iran conflict continue to affect global energy markets. Hassett’s remarks suggest the administration expects a significant reversal once the waterway is restored to normal commercial traffic.
No timeline for reopening was offered, and Hassett did not detail the specific mechanisms through which the administration expects prices to respond.