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 at a pace Americans have never witnessed.
Hassett declined to discuss the specifics of ongoing negotiations or military operations, but emphasized that the reopening of the critical waterway would have an immediate and significant downward effect on energy markets.
Gas prices have already climbed above $4 per gallon in all 50 states as the conflict with Iran has continued to disrupt global oil flows through the strait, which handles a significant share of the world’s daily petroleum shipments.
The strait is one of the most strategically important oil transit chokepoints in the world. Any sustained closure raises fuel costs across global markets, while a reopening typically eases supply concerns and puts downward pressure on crude prices.
Hassett offered no specific timeline for when the strait might reopen or when formal negotiations could produce a resolution.