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” when the critical waterway becomes accessible again.
Hassett declined to detail the status of ongoing negotiations or military operations, but indicated the economic upside of reopening the strait would be substantial. The Strait of Hormuz is one of the world’s most vital oil transit routes, and its closure has placed upward pressure on global energy markets.
All 50 U.S. states have already crossed the $4-per-gallon threshold for gasoline as the effects of the Iran conflict ripple through domestic fuel markets. Hassett’s remarks suggest the administration views a resolution in the strait as a key lever for bringing consumer energy costs down.
No timeline for reopening the strait was provided in his remarks.