Tankers are crossing the Strait of Hormuz and Iran’s actions to choke off traffic through the sea route have not harmed the U.S. economy, White House economic adviser Kevin Hassett told CNBC on Tuesday, reiterating the Trump administration’s position that the war should end in weeks, not months.
“You’re already seeing that oil tankers are starting to pass through the strait, and I think it’s a sign of how little Iran has left,” he said.
“We are very optimistic that this will end in the short term, and then there will be price repercussions when it ends for a few weeks, as ships arrive at the refineries.”
Hassett said there is concern that Asia is not exporting as much refined oil to the United States to cope with a decline in supply from the Middle East.
“We’re seeing some signs that they might be stepping back to make sure they have enough power for themselves. And we have a plan for that,” he said.
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Trump on Monday postponed his meeting with Chinese President Xi Jinping to focus on the war in Iran.
Hassett said US action in Iran is in China’s interest.
“This is a case where the objectives of both countries are aligned, we want a stable global oil market,” he said. “When this war is over, which it will be soon, I’m sure they will get together and have a lot to talk about and hopefully the Chinese will express some gratitude.”
