National Economic Council Director Kevin Hassett predicted Sunday that oil shipments through the Strait of Hormuz could resume within the next two months, offering a timeline for easing global energy pressures tied to the ongoing U.S.-Israeli conflict with Iran. Speaking on ABC's "This Week," Hassett told host Jonathan Karl that traffic through the strategic waterway has already increased compared to two weeks ago.
"The people in Pakistan and India that have refineries that are mostly shut down, they're going to get their oil," Hassett said. "They turn the refineries up and then refine product prices will go down globally, and then it'll spread from place to place. But, really, it's like a month or two until everything gets back to the refineries."
Iran's closure of the strait—a chokepoint for roughly 20% of global oil transit—has sent gas prices soaring since late February. However, Hassett argued that prices have not reached the levels many forecasters expected, in part because of adaptive measures. He cited a major pipeline in Saudi Arabia that allows oil exports to bypass the Gulf entirely.
The national average for regular gasoline in the U.S. has dipped slightly to $4.34 per gallon, down from over $4.50 last week, according to AAA data. A year ago, the average stood at $3.15. Hassett expressed optimism that Americans would ultimately view their economic situation favorably despite war-related anxieties over energy costs.
"In the end, people look at their wallets and they decide how to vote, and if they look at their wallets and look at how much money they have after the increase in prices, they're going to find that they have a lot more money," Hassett said. He added that he expects high prices to decline soon, allowing conditions to return to normal.
During a separate appearance last week on Fox Business Network's "Mornings with Maria," Hassett forecast a dramatic price drop once the strait reopens. "There's so much oil sitting in the Gulf, there's so much excess capacity in Saudi Arabia and UAE, that prices should drop very, very quickly," he told host Maria Bartiromo. He predicted prices would "plummet like nothing you've ever seen before."
The reopening of the Strait of Hormuz is a central pillar of a tentative U.S.-Iran deal currently under negotiation. Both countries have agreed to extend a fragile ceasefire by an additional 60 days. Energy Secretary Chris Wright said earlier this month that the strait would reopen "sometime this summer at the latest," though he previously avoided making predictions while the U.S. remains in a negotiating period.
President Trump stated last Friday that he would make a "final determination" on the potential agreement during a meeting in the White House Situation Room. No update was provided after the session. The emerging deal has drawn scrutiny from former officials, with some warning that it could erode U.S. credibility and regional stability. For more analysis on the broader implications, see this assessment of the deal's risks to global order.
As the administration weighs its next steps, the timeline for oil flow restoration remains uncertain. But Hassett's latest comments signal confidence that the diplomatic track, combined with market adjustments, will soon alleviate one of the conflict's most disruptive economic consequences.
