Amid ongoing tensions with Iran, US President Donald Trump has called on Americans to accept a slight increase in gasoline prices, attributing this to the disrupted shipping through the vital Strait of Hormuz. At a rally held in New York, Trump emphasized that paying “a tiny little bit more” for fuel is a necessary sacrifice to prevent Iran from acquiring nuclear weapons. Furthermore, he mentioned the possibility of declaring the Strait of Hormuz as “a territory of the United States” following a victory over Iran.
In response, Iran has dismissed Trump’s statements, maintaining its control over the strategic waterway. Deputy Foreign Minister Kazem Gharibabadi stated that the blockade would persist until the US acknowledges what he termed as its defeat. Meanwhile, Iranian Foreign Minister Abbas Araghchi remarked that Tehran has not yet decided to reopen negotiations with Washington, and that shipping through the strait will not resume unless Iran’s conditions are met.
The standoff has significantly affected tanker traffic in the Strait of Hormuz, a crucial channel for global oil and natural gas shipments. The uncertainty surrounding the situation has driven crude oil prices higher, impacting fuel costs worldwide. As a result, the average gasoline price in the US has climbed to approximately $4.08 per gallon, marking a 29% increase compared to the previous year. Brent crude prices have also shown a substantial weekly rise.
Iran is feeling the economic strain as well, with President Masoud Pezeshkian attributing the country’s rising inflation to the US blockade, sanctions, and restrictions on Iranian oil exports. Despite these challenges, the Trump administration has warned of implementing further financial measures against Tehran as diplomatic efforts to broker a ceasefire remain stalled.