Amid ongoing tensions with Iran, U.S. President Donald Trump has called on Americans to tolerate slightly increased gasoline prices due to the disruption in shipping through the crucial Strait of Hormuz. Speaking at a rally in New York, Trump emphasized that paying “a tiny little bit more” at the pump is a necessary cost to deter Iran from acquiring nuclear weapons. He further mentioned the possibility of declaring the Strait of Hormuz a U.S. territory following a potential defeat of Iran.
The Iranian government swiftly dismissed Trump’s remarks, with Deputy Foreign Minister Kazem Gharibabadi asserting that Iran will maintain control over the waterway. He stated that the blockade would continue until the United States acknowledges what he termed as its defeat. Additionally, Iranian Foreign Minister Abbas Araghchi indicated that Tehran has not yet decided to reopen negotiations with the U.S., and that shipping through the strait would remain halted unless Washington complies with Iran’s conditions.
The stalemate has severely impacted tanker traffic through the Strait of Hormuz, a vital channel for global oil and natural gas transport. This uncertainty has led to a rise in crude oil prices, exerting upward pressure on fuel costs. Consequently, the average gasoline price in the U.S. has climbed to approximately $4.08 per gallon, marking a 29% increase compared to the previous year, while Brent crude prices are poised for a significant weekly surge.
The economic repercussions extend to Iran as well, where President Masoud Pezeshkian has attributed the country’s rising inflation to the U.S. blockade, alongside sanctions and constraints on Iranian oil exports. Meanwhile, the Trump administration has signaled the potential for further financial measures against Tehran, as diplomatic efforts towards a ceasefire remain at an impasse.