Hassett says fuel prices remain $3.55 per gallon

National Economic Council Director Kevin Hassett said on Sunday that U.S. fuel prices remain stubbornly high even as the Biden administration tries to ease market fears over tensions with Iran. Speaking on CNN’s “State of the Union,” Hassett acknowledged that pump prices are still above levels the White House considers acceptable despite recent efforts to stabilize supply and curb volatility.

The concern comes as Iran-backed Houthi attacks in the Red Sea and broader Middle East instability continue to disrupt global oil shipments. Those disruptions have kept crude prices elevated since late 2023, pushing gasoline prices up nearly 15 cents per gallon since the start of the year. The U.S. has responded by releasing oil from the Strategic Petroleum Reserve, coordinating with allies to protect shipping lanes and pressing OPEC+ to hold production steady rather than cut output.

Gasoline now averages about $3.55 per gallon nationwide, up from $3.30 a month ago and nearly 50 cents higher than a year ago. Hassett pointed to those figures while arguing that the administration’s policy moves have prevented an even larger spike. Still, drivers in states like California and Nevada are paying over $4.50 per gallon, and inflation data due this week is expected to show energy costs adding pressure to household budgets.

Looking ahead, analysts say prices could ease if Iran-backed threats ease or if OPEC+ agrees to a modest output increase. The White House is also considering new tariffs on Russian oil and further SPR releases to blunt any supply shock. For now, though, Hassett’s warning underscores that the administration is still on edge about energy markets—and that drivers won’t see relief anytime soon unless geopolitics cools.