Hassett Says Energy Prices Could Fall Sharply Once Strait of Hormuz Reopens
National Economic Council Director Kevin Hassett predicted a significant drop in energy prices once Iran reopens the Strait of Hormuz, saying costs could fall “like nothing you’ve ever seen before” following the resumption of normal shipping through the critical waterway.
Hassett declined to discuss the specifics of ongoing diplomatic negotiations or military activity, but said the economic outlook shifts considerably once access through the strait is restored. The Strait of Hormuz is one of the world’s most important chokepoints for global oil transit, and its disruption has contributed to elevated fuel costs across the United States.
All 50 states have recently recorded average gasoline prices above $4 per gallon, a benchmark analysts have linked in part to tensions affecting Persian Gulf shipping lanes. Hassett’s remarks signal the administration views a reopening of the strait as a near-term catalyst for broad energy price relief.