US Official Says Global Oil Market Will Be Safer

Kevin Hassett, Director of the White House National Economic Council, said the global oil market will become safer ^[1].

This shift in market stability is critical because energy price volatility directly impacts global inflation rates and consumer costs. A stabilization of oil supplies could provide the economic relief necessary to lower the cost of living for millions.

Speaking on CNBC's "Squawk Box" program, Hassett said the improved outlook is linked to an expected easing of the conflict between the U.S. and Iran [1, 2]. Hassett said the reopening of the Strait of Hormuz is a primary driver for this anticipated stability ^[3].

The Strait of Hormuz serves as one of the world's most vital oil transit chokepoints. Any disruption in this corridor typically leads to immediate spikes in crude prices, a trend that has contributed to recent economic instability.

Hassett said that inflation is expected to drop sharply by the end of the year once the Strait of Hormuz reopens ^[3]. This projection suggests that the administration views the geopolitical resolution in the Persian Gulf as a prerequisite for achieving broader domestic economic goals.

The National Economic Council is responsible for coordinating the economic policy of the U.S. government. Hassett's comments signal a strategic belief that diplomatic or military resolutions regarding Iran will yield immediate dividends in the energy sector [1, 2].

By reducing the risk of supply chain interruptions, the U.S. aims to create a more predictable environment for global energy traders. This predictability is essential for long-term investment in energy infrastructure, and the mitigation of sudden price shocks ^[1].