Hassett Addresses Concerns Over Rising Fuel Costs Amid Potential Iran Deal

Kevin Hassett, National Economic Council Director, aimed to calm worries about increasing fuel prices during a Fox News interview on Sunday. He expressed optimism about a potential agreement with Iran, which could lead to the reopening of the Strait of Hormuz.

Hassett stated, We expect energy prices to plummet as soon as there’s a deal, during his discussion with Fox News’ Jackie DeAngelis. He also noted that the drop in energy prices might allow the Federal Reserve to lower interest rates, thereby easing financial conditions.

This statement followed the recent appointment of Kevin Warsh as the new Federal Reserve Chair. The appointment marks a significant change, as it follows ongoing disputes between President Trump and former Chair, Jerome Powell.

While speaking outside the White House, Hassett conveyed that President Trump valued an independent Federal Reserve. He supported this independence, acknowledging Warsh’s capability, saying, I respect the independence of the Fed and the intellect of Kevin Warsh, and I’m sure that he’ll work it out in a data-dependent way.

Additionally, President Trump and Secretary of State Marco Rubio have indicated optimism about resolving the ongoing conflict. Trump announced that a deal with Iran and allied countries is nearing completion after positive discussions with key global leaders.

Opening the Strait of Hormuz—disrupted since the conflict’s start—is central to the proposed agreement. Hassett noted the anticipation of new oil reserves from countries like Saudi Arabia and the UAE becoming available once the strait reopens.

In his conversation with DeAngelis, Hassett explained, As people are getting ready to get their oil refineries going back to full capacity, then there’s just basically a gusher of oil that could come out.

He mentioned signs that people are currently reluctant to purchase oil on the spot, expecting significant price drops soon, We’ve done a lot of careful modeling about how long it’s gonna take for things to get back to normal, and I’ve already seen signs that people are a little wary about buying oil on the spot market right now because they expect the price to drop a lot, Hassett said.

Regarding inflation, Hassett highlighted promising developments such as the TrumpRx initiative to lower prescription drug costs and recent regulatory easing to decrease costs.