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 “like nothing you’ve ever seen before” following the resumption of normal shipping traffic through the critical waterway.
Hassett declined to detail the status of ongoing negotiations or military activity in the region, but said the economic impact of reopening the strait would be swift and significant. The Strait of Hormuz is one of the world’s most vital oil transit chokepoints, carrying a substantial share of global petroleum exports.
The comments come as fuel prices across all 50 states have topped $4 per gallon, with analysts linking the elevated costs to the ripple effects of recent conflict involving Iran. A resolution that restores full passage through the strait could ease pressure at the pump for American consumers.
No timeline for reopening was offered by Hassett in his public remarks.