National Economic Council Director Kevin Hassett said on Fox News Sunday that there are emerging signs of easing inflation, largely tied to expectations surrounding a potential U.S.-Iran agreement.

He suggested that if a deal is reached and the Strait of Hormuz is reopened, global energy markets could see a significant increase in oil supply, which would drive fuel prices down.

Hassett predicted that energy costs could “plummet” once the agreement is finalized, arguing that market participants are already positioning for lower prices in anticipation of improved supply conditions.

According to Hassett, a combination of factors could contribute to lower inflation, including increased oil production capacity in countries such as Saudi Arabia and the United Arab Emirates, which could come online once shipping routes stabilize.

He described this potential influx of supply as a “gusher of oil” that could help normalize energy markets after months of disruption tied to regional conflict.

Hassett also linked potential energy relief to broader economic policy, stating that lower fuel costs could give the Federal Reserve more flexibility to reduce interest rates if inflation continues to cool.

He emphasized respect for the Fed’s independence while expressing confidence in data-driven decision-making under the new leadership of Kevin Warsh as Federal Reserve chair.The remarks come amid ongoing diplomatic discussions in which President Trump has indicated that a framework agreement with Iran is largely complete.The deal reportedly includes provisions aimed at stabilizing regional tensions and restoring key maritime trade routes.

Hassett additionally pointed to domestic policy measures, such as regulatory changes and pharmaceutical cost initiatives, as further contributors to potential inflation relief in the coming months.