Hassett: Energy prices will drop 'like nothing you've ever seen before' when strait is reopened
Key takeaways
- There s so much oil sitting in the Gulf, there s so much excess capacity in Saudi Arabia and [United Arab Emirates (UAE)], that prices should drop very, very quickly, he told host Maria Bartiromo.
- Gas and oil prices have been elevated since the U.S. and Israeli launched joint strikes on Iran in late February, prompting Tehran to restrict commercial shipping through the Strait of Hormuz.
- According to AAA, the average price of a regular gallon of gas in the U.S. was at about $4.49 by Tuesday afternoon, up from about $3.18 a year ago.
Why this matters: political developments that affect policy direction and public trust.
Well, you know, I can t really talk about the ongoing negotiations and the strikes, but what I can say is that as soon as the straits are open, then energy prices are going to plummet like nothing you ve ever seen before, Hassett said on Fox Business Network s Mornings with Maria.
There s so much oil sitting in the Gulf, there s so much excess capacity in Saudi Arabia and [United Arab Emirates (UAE)], that prices should drop very, very quickly, he told host Maria Bartiromo.
Gas and oil prices have been elevated since the U.S. and Israeli launched joint strikes on Iran in late February, prompting Tehran to restrict commercial shipping through the Strait of Hormuz. The waterway marks a key channel through which nearly a fifth of the world s oil is transported.