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 if Iran reopens the Strait of Hormuz, saying costs would fall “like nothing you’ve ever seen before” once the critical shipping passage becomes operational again.
Hassett declined to comment on the specifics of ongoing diplomatic negotiations or military activity, but said the economic impact of reopening the strait would be substantial and swift. The Strait of Hormuz is one of the world’s most vital oil transit chokepoints, carrying a significant share of global petroleum exports.
Gas prices have already climbed above $4 per gallon in all 50 states as tensions connected to the Iran conflict continue to weigh on energy markets. Hassett’s remarks signal that the White House views the strait’s status as a central factor in near-term inflation and energy costs for American consumers.
No timeline for a resolution was provided. Developments in negotiations or military operations in the region could affect how quickly any price relief materializes at the pump.