As tensions with Iran continue to escalate, US President Donald Trump has called on Americans to brace for slightly higher gasoline prices, attributing the increase to disruptions in the Strait of Hormuz. During a rally in New York, Trump emphasized that the minor hike in fuel costs is a necessary sacrifice to prevent Iran from acquiring nuclear weapons. He also suggested the possibility of declaring the Strait of Hormuz as “a territory of the United States” following a potential victory over Iran.
Iran has dismissed President Trump’s assertions, maintaining its control over the vital waterway. Deputy Foreign Minister Kazem Gharibabadi stated that Iran would uphold its blockade until the US acknowledges what he termed as its defeat. Meanwhile, Iranian Foreign Minister Abbas Araghchi indicated that Tehran has not yet decided to re-engage in negotiations with the US, asserting that shipping through the strait would only resume if Washington meets Iran’s stipulated conditions.
The ongoing standoff has severely impacted tanker traffic through the Strait of Hormuz, a crucial passage for global oil and natural gas transport. This disruption has led to a rise in crude prices, consequently increasing the pressure on fuel costs. Currently, the average gasoline price in the US has climbed to approximately $4.08 per gallon, marking an increase of about 29% compared to the previous year. Brent crude prices are similarly experiencing a significant weekly surge.
Beyond the US, the economic repercussions are being felt in Iran as well. Iranian President Masoud Pezeshkian attributed the country’s rising inflation to the US-imposed blockade, sanctions, and limitations on Iran’s oil exports. The Trump administration, on the other hand, has warned of imposing further financial sanctions against Tehran, as diplomatic efforts to achieve a ceasefire remain at an impasse.