Trump advisor says oil prices will ‘collapse’ with Strait of Hormuz reopening

WASHINGTON, DC: National Economic Council Director Kevin Hassett has predicted an unprecedented plunge in energy costs if ongoing Trump administration negotiations successfully force Iran to fully reopen the Strait of Hormuz.

Appearing Tuesday on Fox Business Network’s “Mornings with Maria,” the chief White House economist explicitly linked the resolution of the volatile three-month Middle East conflict directly to the wallets of American consumers grappling with record-breaking inflation.

“As soon as the straits are open, then energy prices are going to plummet like nothing you’ve ever seen before,” Hassett told host Maria Bartiromo.

He asserted that a massive backlog of unrefined products sitting in the Persian Gulf, paired with substantial excess capacity held by Saudi Arabia and the United Arab Emirates, will cause domestic fuel costs to collapse very quickly once maritime blockades are dismantled.

Maritime blockade drives domestic inflation spike

The administration's optimistic economic projection lands amid prolonged domestic anxiety over soaring fuel costs.

Retail fuel prices have remained severely elevated since the United States and Israel launched coordinated joint strikes on Iranian infrastructure in late February, prompting Tehran to shutter commercial shipping lanes through the strategic waterway.

The Strait of Hormuz marks a vital choke point through which nearly 20 percent of global petroleum supplies are regularly transported.

According to data published by AAA on Tuesday afternoon, the average price of a regular gallon of gasoline in the United States has soared to $4.49, marking a staggering increase from the $3.18 baseline recorded just one year ago.

Qatar diplomatic channels review initial terms

Market indicators responded immediately to the diplomatic progress, with North American West Texas Intermediate crude futures dropping over 6.1 percent to $90.68 per barrel, while global Brent crude fell to $97.22.

At Jaipur International Airport in India, Secretary of State Marco Rubio confirmed to reporters that US representatives are working through intense back-and-forth negotiations in Qatar to iron out specific language inside the initial document.

President Donald Trump defended the emerging framework against hardline critics, noting he instructed negotiators not to rush the text.

The preliminary truce remains highly unstable; just hours after Trump characterized the talks as proceeding nicely, the US launched defensive strikes on mining vessels in southern Iran, prompting the clerical regime to declare that American military bases are no longer safe.