Washington, May 31: Kevin Hassett, director of the White House National Economic Council, stated that the closure of the Hormuz Strait has significantly impacted refineries in India and Pakistan. He expressed optimism that the reopening of this vital maritime route would normalize oil supplies and potentially ease fuel prices.
During an interview on ABC News’ “This Week,” Hassett noted that maritime traffic through the strait has increased compared to previous levels. If ongoing negotiations prove successful, the situation could improve further.
He mentioned, “Once the Hormuz Strait fully reopens, large oil tankers will be able to cover approximately 300 nautical miles daily. Refineries in India and Pakistan, which have been heavily affected due to supply disruptions, will start receiving sufficient oil again.”
Hassett added that once oil supplies are restored, refineries will ramp up production, leading to a decrease in global prices for refined petroleum products, benefiting various countries.
His comments come at a time when the Trump administration is working to advance a ceasefire with Iran and fully reopen the Hormuz Strait, considered one of the world’s most crucial energy transport routes.
Despite numerous challenges, Hassett claimed that there are signs of improvement. He noted that maritime traffic through the strait has increased significantly compared to two weeks ago.
The disruption in the Hormuz Strait has heightened pressure on global energy markets, resulting in rising fuel prices worldwide. Hassett acknowledged that gasoline prices remain high in the United States as well.
He stated, “Certainly, gasoline prices are elevated. While they are not as high as they were at their peak during Joe Biden’s administration, they are still significant.”
When asked about a potential surge in oil prices, Hassett indicated that the market has thus far avoided the worst-case scenarios predicted by some experts. He attributed this stability to alternative export routes and changes in global supply chains.
He also mentioned that economic pressure on Iran is increasing, which may force it to agree to the terms set by the U.S. administration.
It is noteworthy that the Hormuz Strait connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. Approximately 20 percent of the world’s oil trade passes through this narrow maritime route. Therefore, any disruption in this region is a major concern for global energy markets.
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