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 would fall “like nothing you’ve ever seen before.”
Hassett declined to discuss the specifics of ongoing negotiations or military activity, but said the reopening of the critical waterway would have an immediate and dramatic effect on global energy markets.
The Strait of Hormuz is one of the world’s most important oil transit routes, and its closure or restricted access has contributed to elevated fuel costs in recent months. All 50 states have topped $4 a gallon at the pump as the conflict with Iran continues to weigh on prices.
Hassett’s remarks signal the administration views the strait’s status as a central factor in near-term energy price relief for American consumers.