President Donald Trump‘s top economic advisor, Kevin Hassett, said on Monday that gas prices in the U.S. will come down to pre-Iran war levels once the traffic through the Strait of Hormuz moves normally.
Kevin Hassett’s Bullish Oil Prediction
The Trump administration’s Rapid Response handle posted a clip featuring Hassett in a CNBC interview. He said that pipelines in Saudi Arabia and the United Arab Emirates (UAE) were now operating close to capacity due to challenges in the Strait of Hormuz, outlining that the same pipelines were running below capacity before the war.
“Once traffic is really moving, we go back to more than 100 ships a day,” Hassett said, “you’re going to see prices even come down” to pre-war levels. Hassett said that the free-flowing traffic would result in “so much oil pouring out.”
He also said that during the 60 days following the Memorandum of Understanding (MoU), Iran will test Trump’s “resolve,” pointing towards the strikes that took place over the weekend. He then touted a safer global oil market and free-flowing traffic through the Strait following the talks.
NEC Director Kevin Hassett: I think that once traffic is really moving, we go back to more than 100 ships a day, then you're going to see prices even come down from pre-conflict levels because there's going to be so much oil pouring out. pic.twitter.com/7HTxhIT1NI
— Rapid Response 47 (@RapidResponse47) June 29, 2026
Democrat Senator Decries Price Hike
Sen. Ed Markey (D-Mass.) expressed staunch criticism of Trump and his handling of the Iran war via a post on X. “This Fourth of July weekend, gas prices are skyrocketing as Donald Trump’s reckless war with Iran keeps driving up costs for working people,” Markey said in the post, calling the situation “Unacceptable.”
This Fourth of July weekend, gas prices are skyrocketing as Donald Trump’s reckless war with Iran keeps driving up costs for working people.
— Ed Markey (@EdMarkey) June 29, 2026
Unacceptable. pic.twitter.com/FMEOimGxQV
Gavin Newsom Defends California Gas Tax
Gov. Gavin Newsom (D-CA) defended the state gas tax in California once again, as GOP lawmakers in the state pointed to prices at the pump being $2 higher than the national average.
He had earlier defended the State Gas tax, which, according to the California Department of Tax and Fee Administration, would increase the excise tax on gas to $0.634/gallon from July 1st, 2026, saying that the hike was voted on by citizens before he took office.
Analyst Decries Ridiculous Hikes
GasBuddy analyst Patrick De Haan, meanwhile, decried gas price hikes in states like Florida, Colorado and Michigan, where prices increased by approximately $1/gallon, including tax and transport costs, as oil prices went down.
Trump had also urged oil companies to decrease prices at the pump after oil prices in the global markets fell to approximately $70.
Read Also: Trump Gave Away US 'Leverage' Over Iran, Democrat Says After Strait Of Hormuz Ship Attack
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