U.S. — Kevin Hassett, President Donald Trump's top economic advisor, stated on Monday, June 29, 2026, that U.S. gas prices would return to pre-Iran war levels once traffic through the Strait of Hormuz resumes normal flow. Hassett said free-flowing traffic would result in increased oil output.

Hassett noted that pipelines in Saudi Arabia and the United Arab Emirates are operating near their full capacity due to ongoing challenges in the Strait of Hormuz. These pipelines had been running below capacity before the war. "Once traffic is really moving, we go back to more than 100 ships a day, you're going to see prices even come down to pre-war levels," Hassett said. He added that Iran would test Donald Trump's resolve during the 60 days following the Memorandum of Understanding.

Gas prices increased by approximately $1 per gallon in states such as Florida, Colorado, and Michigan, according to GasBuddy analyst Patrick De Haan. This price increase included tax and transport costs. Oil prices in global markets fell to approximately $70.

Why It Matters

Kevin Hassett's statements address the economic impact of geopolitical events on domestic energy prices. His projections link the resolution of shipping issues in the Strait of Hormuz to a potential decrease in U.S. gas prices, suggesting a return to levels seen before the Iran war. This situation is influenced by current pipeline usage in Saudi Arabia and the United Arab Emirates, which are now operating close to full capacity.

The observed increase in gas prices in certain U.S. states reflects the immediate consumer impact of these events. Hassett's comments also indicate an expectation of continued geopolitical challenges with Iran, framing the upcoming 60-day period as a test of the U.S. approach.