Hassett predicts oil will flow through Strait of Hormuz in ‘a month or two’
National Economic Council Director Kevin Hassett on Sunday predicted that oil shipments will pass through the Strait of Hormuz in “a month or two,” while it has been closed off amid the U.S.-Israeli …
National Economic Council Director Kevin Hassett on Sunday predicted that oil shipments will pass through the Strait of Hormuz in “a month or two,” wh
Read Full Story at The Hill →Why This Matters
The Strait of Hormuz is the world’s most critical chokepoint for oil transit, handling nearly a fifth of global seaborne petroleum flows. If Hassett’s timeline holds, even a partial reopening could stabilize prices and ease tensions that have rippled through energy markets for months. The stakes are particularly high for Western allies, who have scrambled to diversify oil sources amid geopolitical volatility.
Background Context
Iran has periodically disrupted shipping in the Strait of Hormuz since the 1980s, including during the Iran-Iraq War and in recent years through tanker seizures and missile threats. The current shutdown follows escalating strikes between Israel and Iran-backed groups, with both sides trading accusations over regional destabilization.
What Happens Next
A quick resumption of flows would ease pressure on Gulf producers to reroute shipments, but a prolonged standoff could force buyers to rely more on U.S. shale or Venezuelan oil. Analysts will watch for signals from Tehran—whether a tactical de-escalation or a test of Western resolve—before declaring the crisis resolved.
Bigger Picture
This episode underscores how energy security remains hostage to Middle East conflicts, despite the rise of renewable alternatives. It also highlights Washington’s limited leverage in deterring regional proxies, a challenge that could reshape global supply chains and pricing strategies for years to come.
