Oil tankers are crossing the Strait of Hormuz and Iran’s actions to choke traffic through the shipping route haven’t hurt the U.S. economy, White House economic adviser Kevin Hassett told CNBC on Tuesday, reiterating the Trump administration’s position that the war ought to be over in weeks, not months.
“Already you’re seeing tankers are beginning to dribble through the straits, and I feel it’s an indication of how little Iran has left,” he said.
“We’re very optimistic that that is going to be over within the short run, after which there shall be price repercussions when it’s over for just a few weeks, because the ships make it to the refineries.”
Hassett said there may be concern that Asia will not be exporting as much refined oil to the U.S. to handle a decrease in supply from the Middle East.
“We’re seeing some signs that they is perhaps pulling that back to make certain that they’ve enough energy for themselves. And we’ve got a plan for that,” he said.
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Trump on Monday postponed his meeting with Chinese President Xi Jinping to deal with the war in Iran.
Hassett said the U.S. motion in Iran is in China’s interest.
“That is one case where the objectives of each countries are aligned, that we wish, you understand, a stable world oil market,” he said. “When this war is over, which shall be sometime soon, I’m sure they’ll get together and have rather a lot to discuss, and hopefully when the Chinese will express some gratitude.”