Gas prices will ‘come down immediately’ when Strait of Hormuz reopens: Duffy

[0:00] And I'm joined now by Transportation Secretary Sean Duffy. Good morning to you. Secretary Duffy, we just heard our experts say gas prices could break record highs. [0:11] And even if the strait opened today, it would take months to recover and for those gas prices to go down. What is your reaction? [0:22] Well, a couple of things. I'll tell you that every time I go into the Oval Office, I hear the president talk about energy prices. [0:27] That's been going on since he took this second term in Washington. [0:32] He's been concerned about American energy dominance, making sure Americans produce more. [0:38] We drive energy prices down. But he's also confronted with the idea that could there be a nuclear Iran? [0:44] He understands the threat of that reality. Iran's been the most destabilizing force in the world for 40 years. [0:53] He sees that as untenable, and I would agree with him. We can't have a nuclear Iran. [0:57] So he's taking action, bold action. And again, he's going to make sure that the world and America is safer as we look forward, [1:05] not just in the several months after this conflict, but in the several years and decades after he's out of the presidency. [1:10] So that clearly seems the most important thing to President Trump. [1:14] But meanwhile, back to those gas prices, do you agree it could take months, even if the strait opened today, [1:21] and that those gas prices might break record highs? [1:27] Well, listen, so I'm at DOT. I'm not in the energy sector. But from all the briefings I've had, once the strait opens, [1:35] you'll see prices come down, come down immediately. And again, there's going to be a tail to that. [1:41] It's going to take time to get back to where we were before this conflict began. But you're going to see, I think, [1:46] immediate relief once the strait opens. Immediate relief. Okay. President Trump said Friday that he is [1:52] dying to make a deal with Iran. You mentioned Iran, of course. I know you're at the DOT. [1:57] But this is a big issue, clearly. And what kind of offer he has gotten from the Iranians. [2:02] Do you know anything about this and why the president would say they have not yet paid a big enough price? [2:08] What does that mean exactly? Yeah, listen, so the president has done very well in his career as [2:18] a builder and as a president. And he doesn't talk publicly about, you know, what those [2:23] negotiations are. Doesn't necessarily say and front run what he's going to want. [2:30] I think we have to let this play out. But the president's going to look for a good deal, a great [2:33] deal for the world and for America with the Iranians. But I think it's untenable to think that the [2:38] Iranians have a nuclear weapon. And they're going to have to open the straits. [2:42] And again, the president's going to negotiate that out. And I think, in the end, America's going to [2:47] benefit. One of the things the president said early on is that the war would be over in about [2:52] four to six weeks. I also want you to listen to Energy Secretary Chris Wright, who told me in [2:57] this program what he told me back in March when I asked him how long Americans should expect [3:02] high gas prices. I think that this conflict will certainly come to the end in the next few [3:08] weeks. Could be sooner than that. But the conflict will come to the end in the next few [3:12] weeks, and we'll see a rebound in supplies and a pushing down of prices after that. [3:17] That was seven weeks ago. You said essentially the same thing about a week later, saying it [3:23] would be short-lived. In your view, why didn't that happen? [3:28] Well, I think if you listen to Secretary Hegseth and Raisin Cain, our general, who's [3:36] orchestrating this war, militarily they've been wildly successful. The president's been [3:42] successful in executing the military operation. Again, we're now navigating, you know, the [3:49] safety through the Strait of Hormuz, and also trying to navigate the nuclear material that [3:56] Iran has. And that's taking a little bit longer. And that's going to play out over the [4:02] next several weeks. But per Chris Wright's point, again, you're going to start to see [4:07] immediate relief. Once the Strait opens and supply flows again, we are going to be in a [4:12] way better place. I will say this, Martha. It's important for Americans to understand we [4:16] have a tremendous amount of energy in America. And so, yes, it is priced globally, oil and gas is. [4:23] But in America, we're not going to have supply shortages because we produce so much here. [4:27] And that is a net benefit to the U.S. as we look at, for me, jet fuel prices or even the [4:34] supply chain for energy at the pump for American citizens. We have deep supply here. [4:40] And I think that's, that can't be forgotten because President Trump has focused on [4:44] American energy and American energy dominance. [4:47] Mr. Secretary, I know you're feeling optimistic about this, but Americans are apparently not. [4:52] Our new poll makes clear they feel generally bleak about their financial situation. Again, [4:57] 44 percent cut back on driving, 42 percent cut household expenses, 34 percent changed vacation [5:05] plans. The rise in gas prices is having a real effect. So what would you say to those [5:10] Americans? We see no end in sight yet of that war. [5:14] Well, listen, that point is why the president has focused so hard on energy pricing and American [5:26] energy dominance. The last administration, as you're well aware, was trying to move [5:31] Americans from oil and gas to electric vehicles. Americans didn't want it. [5:36] So the president has leaned into American energy dominance. And, yes, we have seen an [5:41] increase in pricing. But if you look at what the president has done for consumers, one big, [5:45] beautiful bill, he wanted to make sure that Americans got a big tax refund this tax season. [5:49] Not sure if that was in your poll. I didn't get a chance to look at it before I came on. [5:53] But Americans were happy with how much they got back because he said, listen, we're not going to tax [5:57] tips. We're not going to tax Social Security. [6:00] But, Mr. Secretary, what I'm talking about is now. I'm talking about now. [6:05] I'm talking about now. What is your message to Americans now who are suffering because of [6:10] these gas prices? [6:12] Well, Martha, what I am talking about right now, we just went through tax season. [6:16] And I'm talking about what happened with people's refunds as they've gone through tax season. [6:20] Well, clearly they're not feeling it. [6:22] Energy prices have come up. You're right. [6:27] And, again, you have to look at the president to say, what does a leader do? [6:32] What does a president do when he sees a potential nuclear Iran? He's not going to tolerate it. [6:39] And we can't have that when they have long-range missiles that can deliver those nuclear [6:45] weapons to many of our friends and to many of our bases. That is untenable. [6:50] And it's been a problem for, and you've reported on this, for decades it's been a problem. [6:55] This is the first president who said, no more, no longer. We're not going to have a nuclear [6:59] Iran. So he's leaned into that. And I think if you ask that question specifically, [7:03] Americans applaud him for taking on this threat. And I'm proud of our president as well. [7:08] And, again, we're going to get back to lower energy prices when the strait opens up. [7:12] Those prices come down and Americans travel. And I think our economy is going to be set up for [7:18] something that we haven't seen before in regard to American wealth and American opportunity. [7:26] And, Mr. Secretary, just finally on Spirit Airlines, they ceased operating over the weekend. [7:32] You have said that the war was not an impetus in putting Spirit out of business because they [7:38] filed Chapter 11 bankruptcy last summer. But the Spirit CEO said in his statement that the [7:43] sudden and sustained rise in fuel prices ultimately left them with no alternative. [7:48] Quickly, if you can. Sure. So Spirit tried to merge with JetBlue. [7:55] The Joe Biden, Pete Buttigieg administration, and DOJ tanked that deal. [7:59] Immediately after that they filed for bankruptcy. They were having financial problems. [8:02] Martha, they filed for bankruptcy again last year. They were bleeding money. [8:07] And so this was in their works for some time. They were going to have to liquidate. [8:12] And so, again, I'm proud of the American airlines that have stepped up to take care of the [8:18] passengers of Spirit, making sure they can get home. The employees of Spirit have special [8:24] access to apply for jobs with other American airlines. So, again, I've stepped in, worked [8:30] with the CEOs. And, again, this could have been chaotic. And under this administration, [8:34] President Trump's leadership, there isn't chaos. There is actually a unified American [8:39] approach to helping passengers and employees of Spirit navigate this crisis. [8:43] Okay. We appreciate your time this morning, Mr. Secretary. Thank you so much. [8:47] Thanks, Martha.