The White House is signaling a cautious optimism regarding the seven-week-long friction in the Middle East. Kevin Hassett, director of the National Economic Council, indicated in a Monday interview with CNBC that peace negotiations with Iran are on the horizon. Despite recent escalations—including Tehran’s move to close the Strait of Hormuz and a skirmish involving the U.S. Navy and an Iranian vessel in the Gulf of Oman—the administration suggests a diplomatic resolution may be closer than the current maritime volatility implies.
Hassett’s projections lean heavily on the stabilizing force of American energy independence. He noted that the global risk premium on oil is likely to dissipate as the Strait of Hormuz eventually reopens, coupled with sustained high levels of crude production within the United States. This outlook follows a week of significant market fluctuations, during which WTI fell by 14.5% and Brent ceded over 5%, reflecting a market caught between geopolitical anxiety and supply-side realities.
The broader regional landscape remains precarious, however. Reports suggest the United Arab Emirates has initiated discussions with Washington regarding potential financial support should the conflict deepen. While Hassett pointed to President Trump’s social media posts as markers of diplomatic progress—noting a timeline for resolution that could span the next several weeks—the situation remains a delicate balance of military posturing and economic pragmatism.
With reporting from InfoMoney.
Source · InfoMoney
