Hassett Says Energy Prices Could 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, the critical waterway through which a significant share of the world’s oil supply flows.
Hassett said prices would fall “like nothing you’ve ever seen before” as soon as the strait is reopened, though he declined to elaborate on the status of ongoing negotiations or military operations in the region.
The comments come as gas prices have surged across all 50 states above $4 per gallon in the wake of the Iran conflict, placing added pressure on American consumers and the broader economy.
The Strait of Hormuz connects the Persian Gulf to the Gulf of Oman and serves as a transit point for roughly one-fifth of global oil supply. Any prolonged closure carries significant consequences for global energy markets and domestic fuel costs.