White House National Economic Council Chairperson Kevin Hassett said disruptions to crude supply at refineries around the world would not persist for long once the Strait of Hormuz reopens. He explained that if the war with Iran ends and passage through the strait resumes, the needed volumes could be supplied within one to two months.
On the 24th (local time), Chairperson Hassett appeared on CBS's "Face the Nation" and gave this answer when asked about the timing for crude supply normalization after the reopening of the Strait of Hormuz. He is considered a key economic aide to U.S. President Donald Trump.
Chairperson Hassett described the crude supply disruption as a logistics issue. If the strait opens, tankers will resume operations and crude can be delivered to refineries quickly, he said. He added that tankers travel about 300 nautical miles, or about 556 kilometers, per day.
He expected the supply restart effect to appear first in areas close to the strait. Chairperson Hassett said countries near the Strait of Hormuz, such as India or Pakistan, could receive crude immediately and begin producing refined products. In contrast, regions farther away, such as New Zealand, would need relatively more time.
He set the overall normalization timeline at one to two months. Chairperson Hassett said, "In roughly one to two months, every refinery on Earth will have the crude it needs."
However, he did not make a definitive call on when the Strait of Hormuz would reopen. He said the timing of reopening the strait is an issue to be resolved in negotiations by President Trump, Secretary of State Marco Rubio, and the Iranian side.
Chairperson Hassett also pushed back against pessimism surrounding the U.S. economy. Responding to concerns that inflation and oil price volatility could burden the economy even as the stock market continues to hit record high levels, he said, "There are absolutely no dark clouds gathering over the economy."
On the deterioration in consumer sentiment, he took issue with the political leanings of survey respondents. He argued that although the consumer sentiment index fell to a record low due to higher oil prices and inflation fears stemming from the war with Iran, a significant number of respondents categorized as independents were in fact Democratic-leaning, distorting the gauge.
Chairperson Hassett said the consumer confidence index should be watched rather than the consumer sentiment index. He said the consumer confidence index is pointing in the same direction as other economic indicators.
The consumer confidence index published by the Conference Board, a U.S. economic research organization, showed a slight uptick last month despite economic uncertainty and rising oil prices caused by the war with Iran.