Oil tankers are crossing the Strait of Hormuz and Iran’s actions to choke off traffic through the shipping lane have not hurt the US economy, White House economic adviser Kevin Hassett told CNBC today, reiterating the Trump administration’s position that the war should end in weeks, not months.
“You’re already seeing oil tankers in a small flow starting to cross the Strait and I think that’s a sign of how little is left in Iran,” he said.
“We are very optimistic that this will end in a short period of time and then there will be an impact on prices when this ends in a few weeks as ships manage to get to the refineries,” the US official added.
He noted that there is concern that Asia may not export as much refined oil to the US to manage a reduction in supply from the Middle East.
“We’re seeing some indications that they may pull this back to make sure they have enough energy for themselves. And we have a plan for that,” he said.
Trump postponed his meeting with Chinese President Xi Jinping yesterday to focus on the war in Iran.
Hassett stressed that US action on Iran is in China’s interest.
“This is a case where the goals of both countries are aligned, that we want, you know, a stable global oil market,” he said.
“When this war is over, which will happen soon, I’m sure they will meet and have a lot to talk about, and I hope the Chinese will express some gratitude,” Hassett concluded.
