US energy chief says Hormuz could reopen by end of summer

US Energy Secretary Chris Wright on Friday said the Strait of Hormuz is expected to reopen "sometime this summer at the latest," while warning that the US military could intervene if Iran continues disrupting traffic through the strategic waterway.

Speaking to CNBC from an LNG terminal in Cameron, Louisiana, Wright said a diplomatic agreement with Iran could emerge "in the next few days" despite strains surrounding the fragile US-Iran ceasefire brokered by Pakistan on April 8 and later extended by US President Donald Trump.

"If Iran continues to hold the world economy hostage, the US military will force the reopening of the Straits of Hormuz, but that's not trivial to do," Wright said, adding that negotiations remain the preferred option.

The comments came as the American Automobile Association (AAA) reported the US national average gasoline price at $4.53 per gallon on Friday, amid renewed political debate over Trump's proposal to suspend the federal gas tax. Wright also said US LNG exports are increasing to help offset supply disruptions linked to the Hormuz crisis.