Oil prices PLUNGE as Iran deal hopes SHAKE markets

Added: 2026-05-27

[00:00:00]The prospect of a potential deal with Iran has now driven oil prices lower about 92 93 bucks for West Texas crude.

[00:00:09]Uh but the Dow is uh the futures market was trading way high. So once we get all 30 Dow components open, we'll see where we are. Up about 100 points right now.

[00:00:19]And the NASDAQ was flying as well. All this happening now amid a recent increase concern over gas prices in the US. I mean look at your screen. Numbers don't lie. National average sitting at $449 today. Kevin Book, Clear View Energy Partners, senior advisor. Kevin, how you doing? Welcome to the program and good morning to you on this Tuesday here. Um, >> buy the rumor, sell the news. Isn't that what happens these days? How do you >> Well, deals take a while to work out, Bill. And so, uh, if we're waiting 30 days for demining of the straight, uh, and then we start evacuating ships, then we start moving new ships in to take out all of the the products that have to get restarted in the Gulf. Uh, we're a ways from resolution, but the market is is reflecting optimism right now.

[00:01:05]>> Okay. So, opening the straight really will determine how much we pay for gasoline.

[00:01:11]>> In the end, that's what it really comes down to. There's also inventories that have been depleted throughout this crisis. And if we have another 30 days to wait, we have another 30 days of inventory depletion. So prices coming down. Yes. Uh but going back to the status quo anti to where we were before the war, that'll take a while.

[00:01:27]>> All right. Kevin Hasset, the White House on Sunday with Maria. Here's Kevin Hasset.

[00:01:33]>> Say that as soon as a deal is reached, then the straits are open and oil starts flowing again. And there's an enormous amount of stuff that's sort of pent up and locked into the straits, but an enormous amount also uh of new reserves that could be put online, especially in Saudi Arabia and UAE. I think that as soon as we get energy prices going back down, you could actually be looking at negative inflation because of the energy price going down.

[00:01:58]>> I mean, it's possible, but but a lot of those new routes in the Middle East are going to take some time to get underway.

[00:02:04]I I know Saudis, Saudi Arabia and the UEIE have increased um the amount of oil they pump through the pipeline, but to build new pipelines is going to take some time.

[00:02:15]>> Yeah, the Amiradis are working on expanding their route to Fujira, which goes around the straight of Hormuz.

[00:02:20]That's something they intend to have up and running in 2027. Uh they're using the pipeline they have now, 1.8 million barrels per day. Uh and that has helped them to keep keep pumping while the crisis has been going on.

[00:02:30]>> Yeah. How about the Boring Company? How about Elon Musk? [laughter] I mean, I am I isn't this idea perfect for what he is designing >> to to go beneath the earth and and dig through the sand with no obstructions?

[00:02:44]>> Well, I'll tell you one thing.

[00:02:45]>> It seems obvious to me. Go ahead.

[00:02:47]>> It's a lot easier to build pipelines in some places when you have more relaxed permitting processes. Uh so I think uh if you're trying to build a pipeline in the Middle East, particularly now when they see the the sort of the realities of the crisis they've just faced, it's probably going to get permitted a lot faster.

[00:03:02]>> I agree with that. Here's Marco Rubio.

[00:03:04]We played it about half an hour ago.

[00:03:06]Here he is on the emphasis of the straight.

[00:03:09]>> The straits have to be open. They're going to be open where the other. So they need to be open. What's happening there is unlawful. It's illegal. It's unsustainable for the world. It's unacceptable.

[00:03:17]>> That cannot happen. Straights need to be open, unimpeded, without tolls. And uh and obviously that needs to happen to me as soon as I >> You wonder if the negotiators step on the gas when it comes to opening the straight like that. Like that what's been talked about over the weekend is that is step one. Take it out over a 60-day period and make sure that the Iranians stick to it. Uh here's the question. Politically, Democrats are powered by high gas prices, forgetting they loved expensive energy. Former Biden officials now to cry energy costs after years of pushing climate policies that drove prices past $5 a gallon. Do you see hypocrisy and their position?

[00:04:00]>> There's a couple of things there, Bill.

[00:04:02]First of all, high prices tend to usher out incumbent politicians faster than they usher in new technologies. So, all those who embrace high prices do so at their peril. Second, if you compare the prices to where they were in 2022 on an inflationadjusted basis, it's not actually $5 a gallon you're comparing it to, it's closer to what would be $5.60 a gallon now. Uh, and more importantly, if you look at the share of disposable income, the national average gasoline price is currently consuming. It's about 8/10en of a percent below where it was at that peak in June of 2022. So, I I think uh everybody who who drives wants lower prices, and I don't think anybody who makes political hay wants to sleep on that bed when they're in office.

[00:04:41]>> That's true. Yeah. I mean, three bucks and change, I think Americans can handle it, but five bucks, pushing five bucks, uh might test your patience and their wallet. Kevin, nice to see you. Yeah, Kevin Book, thank you in Washington, DC.

[00:04:54]Be sure to like and subscribe for all the Fox News latest on YouTube and catch full shows streaming now on Fox