National Economic Council Director Kevin Hassett addressed concerns over increasing fuel costs on Sunday, amidst expectations of a deal with Iran that could reopen the Strait of Hormuz. Hassett told Fox News’ Jackie DeAngelis that energy prices could fall significantly with a deal in place, leading to more opportunities for the Federal Reserve to lower rates.
These comments followed the inauguration of Kevin Warsh as the new Federal Reserve Chair, an appointment made by President Donald Trump, which succeeded Jerome Powell after intense deliberation between the President and Powell.
White House National Economic Council Director Kevin Hassett speaks outside the White House West Wing in Washington, D.C., on April 18, 2025. (Andrew Harnik/Getty Images)
Hassett emphasized the necessity of an independent Fed and expressed support for Warsh, relying on his data-driven approach. Meanwhile, President Trump and Secretary of State Marco Rubio have expressed optimism about resolving the current geopolitical conflict.
On Saturday, Trump announced that an agreement was nearing completion with Iran and allied nations after productive discussions with key global leaders.
Ships are anchored in the Strait of Hormuz off Bandar Abbas in southern Iran on May 4. (Amirhossein Khorgooei/ISNA/AFP via Getty Images)
Final details of the proposed deal are under negotiation, with Trump promising an announcement in the near future. Reopening the Strait of Hormuz, a critical provision of the agreement, has been highlighted by Trump.
Hassett also noted that new reserves in countries like Saudi Arabia and the United Arab Emirates could begin operations once the strait reopens, potentially increasing oil supply significantly.
“As people prepare their oil refineries to return to full capacity, a substantial increase in available oil could follow,” Hassett explained. Fox News has modeled expectations that oil price drops could dissuade spot market purchases, suggesting prices might decrease soon. This development represents positive news amidst broader inflation concerns.
On inflation, Hassett mentioned promising signs of upcoming relief, such as the TrumpRx initiative to lower prescription drug costs and recent modifications to environmental regulations aimed at reducing expenses.
Fox News’ Alexandra Koch contributed to this report. Taylor Penley is an associate editor with Fox News.