President Donald Trump has called on Americans to tolerate slightly increased gasoline prices as tensions with Iran persist, leading to disruptions in the vital Strait of Hormuz. During a rally in New York, Trump emphasized that paying “a tiny little bit more” for gasoline is a reasonable cost to prevent Iran from acquiring nuclear weapons. He also mentioned the possibility of declaring the Strait of Hormuz as “a territory of the United States” following a potential victory over Iran.
In response, Iran has dismissed Trump’s statements, asserting that it will maintain control over the waterway. Deputy Foreign Minister Kazem Gharibabadi stated that Iran will continue to enforce the blockade until the United States acknowledges what he termed as its defeat. Furthermore, Iranian Foreign Minister Abbas Araghchi indicated that Tehran has not yet decided to resume negotiations with the U.S., insisting that shipping through the strait will only recommence if Washington meets Iran’s conditions.
The ongoing standoff has significantly impacted tanker traffic through the Strait of Hormuz, a crucial passage for global oil and natural gas shipments. This uncertainty has driven crude oil prices higher, subsequently increasing pressure on fuel costs. Consequently, the average price of gasoline in the United States has surged to approximately $4.08 per gallon, marking a 29% increase compared to the previous year. Meanwhile, Brent crude prices are also poised for a notable weekly rise.
The economic repercussions of the conflict are being felt in Iran as well. Iranian President Masoud Pezeshkian has attributed the country’s rising inflation to the U.S. blockade, sanctions, and restrictions on Iranian oil exports. Amid these challenges, the Trump administration has hinted at the possibility of imposing additional financial measures against Tehran, as efforts to negotiate a ceasefire remain at an impasse.