As tensions with Iran persist and disruptions continue in the Strait of Hormuz, US President Donald Trump has called on Americans to tolerate slightly elevated gasoline prices. During a rally in New York, Trump argued that paying “a tiny little bit more” at the pump is a necessary cost to prevent Iran from developing nuclear weapons. He also mentioned the possibility of declaring the Strait of Hormuz a US territory if Iran is defeated.
Iran has dismissed Trump’s statements, asserting that it will maintain control over the crucial waterway. Deputy Foreign Minister Kazem Gharibabadi stated that Iran will continue enforcing its blockade until the US acknowledges what he termed as the reality of its defeat. At the same time, Iranian Foreign Minister Abbas Araghchi expressed that Tehran has not yet decided to resume negotiations with Washington. He emphasized that shipping through the strait will only resume if Iran’s conditions are met by the US.
The ongoing standoff has significantly affected tanker traffic through the Strait of Hormuz, a key passage for global oil and natural gas supplies. This situation has contributed to a rise in crude oil prices, consequently increasing fuel costs. Currently, the average gasoline price in the US has risen to approximately $4.08 per gallon, marking a 29% increase from the previous year. Brent crude prices have also experienced a notable weekly surge.
Iran is also feeling the economic repercussions of this crisis. Iranian President Masoud Pezeshkian has attributed the nation’s rising inflation to the US blockade, sanctions, and limitations on Iranian oil exports. Meanwhile, the Trump administration has warned of further financial measures against Tehran as diplomatic efforts to reach a ceasefire remain at a standstill.