Gas and fertilizer prices will drop “relatively quickly” with Iran deal, Trump economic adviser says
President Trump’s top economic adviser struck a positive tone on high gas prices as the summer travel season gets underway, saying they will fall once a deal is signed with Iran and the Strait of Hormuz reopens.
“The gas price story is a serious one,” National Economic Council Director Kevin Hassett told reporters on Friday. “We understand that people are hurting on that, and we’ve taken a number of measures to reduce the disruption, and we expect it to be temporary.”
The current average price for a gallon of regular is $4.22, according to AAA, about $1.10 more than a year ago at this time. But the prices have fallen recently, about 24 cents in the last month.
Hassett was also asked about the high price of fertilizer, which is made in part with oil, seriously impacting farmers in the U.S.
“You’re right that because of the closure of the strait, that the part of fertilizer that comes from oil, like the ammonia-based things and the sulfur, that those things are seeing skyrocketing prices,” he said. “But our expectation is that once we have a deal, then that’s something that can be fixed relatively quickly.”
However, it may not be all that fast. It may take until mid- to late-2027 for prices to reach pre-war levels, GasBuddy petroleum expert Patrick De Haan told CBS News earlier this week.
