In an interview on “Face the Nation” with Margaret Brennan on March 15, 2026, Kevin Hassett, Director of the National Economic Council, addressed the potential economic ramifications of the ongoing conflict involving Iran. As the Israeli Defense Forces (IDF) continue their operations, which are expected to last until early April, questions arise about the impact on both the U.S. economy and global oil markets.
Economic Forecast Amid Conflict
Hassett explained that the U.S. government is closely monitoring the situation, with the Department of Defense estimating that military operations could take four to six weeks to complete. He emphasized that the U.S. economy is in a strong position, contrasting it with the oil crisis of the 1970s when domestic production was low. “America is not going to have its economy harmed by what the Iranians are doing,” he stated, noting the country’s significant oil production capabilities.
Despite disruptions in the Strait of Hormuz, where significant oil trade occurs, Hassett pointed to futures markets indicating a rapid resolution and a subsequent decline in oil prices. “I have not seen a future price path with such a steep decline in all my years watching futures,” he remarked, suggesting optimism about a swift end to the conflict.
However, the International Energy Agency has described the current situation as the largest supply disruption in the history of the global oil market, indicating that the situation is complex. Gas prices have surged more than 20% since the onset of hostilities, leading to increased operational costs for airlines, which have begun raising ticket prices. United Airlines’ CEO recently highlighted the direct impact of rising jet fuel prices on consumer costs.
Strategic Responses to Supply Chain Challenges
As economic pressures mount, Hassett assured viewers that the government is taking proactive measures to mitigate potential supply chain disruptions. “We know how to minimize the impact of this disruption,” he said, referencing past analyses conducted during his tenure as Chairman of the Council of Economic Advisers. The administration is reportedly increasing permits for oil imports from Venezuela and seeking alternative sources of fertilizer from countries like Morocco.
Hassett acknowledged the challenges posed by soaring energy prices, stating, “The big problem right now would be energy prices and we’re watching and monitoring closely.” He mentioned ongoing discussions to facilitate the transport of jet fuel from the Gulf of America to the West Coast, aiming to prevent further disruptions.
When questioned about the financial implications of the war, Hassett confirmed that the Pentagon’s latest estimate for military costs stands at $12 billion, noting that the administration currently has the resources needed for the ongoing operations. He clarified that while Congress may need to provide additional funding in the future, the necessary weapons and resources are already in place.
Despite the financial challenges associated with military engagement, Hassett expressed confidence in the resilience of the U.S. economy. He pointed out that the potential for increased oil production and industrial output following the resolution of the conflict could lead to a significant positive shock for the global economy.
As the situation evolves, the administration remains focused on protecting U.S. economic interests while navigating the complexities of international relations and market dynamics. The next few weeks are critical as the government assesses the ongoing military operations and their broader economic implications.
