Energy Secretary: Hormuz Will Reopen by Summer’s End
Energy Secretary Chris Wright said Friday that the Strait of Hormuz is expected to reopen no later than this summer, expressing optimism that an agreement with Iran may be reached within days while cautioning that the United States is prepared to use military force if necessary to restore shipping through the critical waterway.
Wright made the comments during a visit to a liquefied natural gas facility in Cameron, Louisiana, as gasoline prices across the country continued climbing amid uncertainty surrounding the fragile ceasefire between the United States and Iran. The national average price for gas rose to $4.53 per gallon as President Donald Trump urged Congress to temporarily suspend the federal gas tax to help relieve pressure on consumers.
Speaking with CNBC’s Brian Sullivan on “Squawk Box,” Wright characterized the disruption in the Strait of Hormuz as temporary and suggested Iran ultimately would not be able to maintain its grip over such a vital global trade route.
According to Wright, the United States is increasing liquefied natural gas exports by approximately 2.5 billion cubic feet per day to help compensate for an estimated 10 billion cubic feet per day in worldwide energy supply disrupted by the Hormuz situation.
“Traffic will be flowing through the Straits [sic] of Hormuz, you know, as soon as we can, but certainly sometime this summer at the latest,” he said, adding that a diplomatic resolution could be reached “in the next few days.”
Wright warned that if negotiations fail, military action remains a possibility.
If Iran “continues to hold the world economy hostage, the United States military will force the reopening of the Straits [sic] of Hormuz, but that’s not trivial to do,” he said, noting that early military steps have been taken, but a negotiated outcome is preferable.
Washington and Tehran entered into a two-week ceasefire agreement on April 8 with Pakistan serving as mediator, and Trump later extended the arrangement on April 21.
Since then, however, both governments have accused one another of violating the truce. Trump recently described the ceasefire as being on “massive life support” after dismissing Iran’s latest counteroffer during negotiations.
When asked about the leadership situation inside Iran, Wright pointed to what he described as instability and uncertainty within the regime itself.
Iran’s newly selected supreme leader, Mojtaba Khamenei, has not been seen publicly since being chosen on March 9. A diplomatic memorandum cited by The Times of London in April — reportedly based on American and Israeli intelligence assessments — claimed Khamenei had become incapacitated, though Iranian officials denied those reports.
Wright said the uncertainty “could ultimately lead to change in regime in Iran.”
Meanwhile, rising fuel costs continue creating political pressure in the United States.
AAA reported Friday that the national average gasoline price stood at $4.53 per gallon, while California prices climbed to $6.15, with three states recording averages above $5 per gallon.
Earlier this year, Wright predicted gas prices would fall below $3 by summer. He later revised that timeline, suggesting in April that such a benchmark might not be reached until 2027, a projection Trump publicly criticized.
On Monday, Trump called for a temporary suspension of the federal gasoline tax of 18.4 cents per gallon, which finances the Highway Trust Fund and would require congressional approval to pause.
Sen. Josh Hawley of Missouri introduced legislation seeking a 90-day suspension of the tax, while Senate Majority Leader John Thune said he would support holding hearings on the proposal.
Democrats in the House and several industry organizations have opposed the idea, arguing that removing the tax would reduce infrastructure funding while providing drivers only limited relief at the pump.
{Matzav.com}
