Amid ongoing tensions with Iran, US President Donald Trump has called on Americans to bear slightly increased gasoline prices, attributing the rise to the continued disruption of shipping through the Strait of Hormuz. Speaking at a rally in New York, Trump justified the higher fuel costs as a necessary measure to prevent Iran from developing nuclear weapons. He also suggested the possibility of declaring the strategic waterway “a territory of the United States” following a potential victory over Iran.
Iran has dismissed President Trump’s remarks, maintaining that it retains control over the Strait of Hormuz. Deputy Foreign Minister Kazem Gharibabadi emphasized that Iran would uphold the blockade until the US acknowledges what he termed as Iran’s triumph in the standoff. Meanwhile, Iranian Foreign Minister Abbas Araghchi has indicated that Tehran has yet to decide whether to re-engage in negotiations with the United States, insisting that shipping through the strait will remain halted unless Washington complies with Iran’s stipulations.
The ongoing confrontation has significantly affected tanker traffic through the Strait of Hormuz, a crucial channel for global oil and natural gas transport. This disruption has contributed to a rise in crude oil prices, consequently increasing pressure on fuel expenses. The average price of gasoline in the US has climbed to approximately $4.08 per gallon, marking a 29% increase compared to the previous year. Brent crude prices are also on track for a notable weekly ascent.
The economic consequences of this standoff are being felt on both sides. In Iran, President Masoud Pezeshkian has attributed the country’s rising inflation to the US-imposed blockade, sanctions, and restrictions on Iranian oil exports. Meanwhile, the Trump administration has hinted at the possibility of further financial sanctions against Tehran as diplomatic efforts to achieve a ceasefire remain at an impasse.