Sen. Bernie Sanders has reacted with dismay to National Economic Council Director Kevin Hassett’s optimistic view on rising oil prices, saying simply: “God help us all.”
“Imagine if oil prices start going back down because the situation resolves itself somehow, then you could be looking at inflation close to zero,” Hassett told CNBC Tuesday, wishing away the six-week war in Iran.
Interviewing the senator subsequently on MS NOW, Chris Hayes played the clip and commented: “I mean, I guess the idea is that if energy prices go down, it will be better, but energy prices are going up right now.”
Both men chuckled as Sanders responded: “This is [President Donald Trump’s] economic adviser, God help us all.
“Look, the reality is [Benjamin] Netanyahu’s wars in Gaza, West Bank, Iran, Lebanon have not only been grossly immoral and destructive, but they are also impacting billions of people throughout the world.
“Here in the United States, you know, we’re having 60 percent of our people living paycheck-to-paycheck. And now what they’re having to deal with is gas in Vermont, I think it’s over four bucks a gallon, parts of the country, it’s higher than that. And that means less money for food, less money to be able to pay the rent.”
He continued: “So, what you are seeing is all across this country, you’ve got Republicans who said, ‘Gee, this guy promised us that we would not get involved in never-ending wars, we would not be involved in the Middle East, this guy who said he was going to bring down prices, control inflation, and what do we got now?’ You got an endless war, which, by the way, may end up costing us a trillion dollars.
“And Trump’s thought is that when we spend that money, we can cut back on healthcare and child care to pay for the war. Pretty crazy stuff. And, you know, now we have an affordability crisis magnified because of the war. So that is why I think you’re seeing people all over this country are saying, ‘Hey, what world is President Trump living in?’”
Despite Hassett’s wishful thinking, Sanders is correct, and according to the American Automobile Association, the average U.S. gas price as of Wednesday morning stands at $4.11, with people paying significantly more at the pump on the West Coast as a direct consequence of the war disrupting oil markets.
Elsewhere in his interview with CNBC, Hassett bizarrely attempted to reassure viewers by saying that at least America’s energy giants were profiting from the crisis.
“While it’s very frustrating to go to the pump and see what the price of gasoline looks like, the benefit for oil producers and workers in those industries is significant enough that the GDP effect in the U.S. is much smaller,” he told presenter Sara Eisen.
But with the Strait of Hormuz still effectively shut and oil prices hovering just below $100 per barrel, the International Monetary Fund on Tuesday lowered its global growth outlook and warned the world economy could reach the brink of recession if the conflict worsened.
For its part, the administration offered further mixed messaging Tuesday, with Trump telling Maria Bartiromo on Fox Business the war is “very close” to ending, despite the failure of last weekend’s peace talks in Pakistan and the fact that he similarly promised that the U.S.’s “core strategic objectives are nearing completion” two weeks ago.
Meanwhile, Treasury Secretary Scott Bessent told the BBC that a “small bit of economic pain” was a small price to pay for long-term international security and Kansas Republican Sen. Roger Marshall told Newsmax viewers: “I’m sorry the gas prices are going up but your national security is more important than your pocketbook.”
Energy Secretary Chris Wright was also non-committal about when the war might conclude and domestic economic conditions improve, telling the Semafor World Economy summit in Washington, D.C., that his earlier forecast of this summer was now looking like an “aggressive timeframe.”
“In the very long term, definitely, this will reset prices down,” Wright said. “But we’re going to see energy prices, you know, high and maybe even rising, until we get the ships, meaningful ship traffic, through the Straits of Hormuz. That'll probably hit the peak oil price at that time. That's probably sometime in the next few weeks.”
As Trump had said in a previous interview with Bartiromo, to the host’s evident surprise, Wright admitted there was “a very real possibility” that further oil price rises could yet come before things get better.
Can Pakistan bring US and Iran back to the negotiating table before ceasefire ends?
Officials warn Sudan conflict has been ‘abandoned’ as war enters fourth year
Iran war live: Tehran risks Trump row with plan to bypass Strait of Hormuz blockade
JD Vance fires back at criticism of Erika Kirk’s grieving of late husband Charlie
JD Vance heckled as Turning Point members turn their back on Trump
