Amid ongoing tensions with Iran, U.S. President Donald Trump has called on Americans to tolerate slightly increased gasoline prices. During a rally in New York, Trump argued that paying “a tiny little bit more” for gasoline is a worthwhile trade-off to prevent Iran from acquiring nuclear weapons. He also floated the idea of declaring the Strait of Hormuz as “a territory of the United States” following a potential victory over Iran.
Iran has firmly dismissed President Trump’s assertions, maintaining that the Strait of Hormuz will remain under Iranian control. Deputy Foreign Minister Kazem Gharibabadi stated that Iran will continue to enforce its blockade until the U.S. acknowledges what he termed as its defeat. Meanwhile, Iranian Foreign Minister Abbas Araghchi noted that Tehran has not yet decided to re-enter negotiations with the U.S., emphasizing that shipping through the vital waterway will not resume unless Washington meets Iran’s stipulated conditions.
The ongoing standoff has significantly disrupted tanker traffic in the region. The Strait of Hormuz is a critical passage for global oil and natural gas shipments, and the uncertainty has contributed to rising crude prices, adding pressure to fuel costs worldwide. In the United States, the average gasoline price has climbed to about $4.08 per gallon, marking a 29% increase compared to the previous year. Brent crude prices are also on track for a notable weekly rise.
The economic repercussions are being felt keenly 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. Meanwhile, the Trump administration has warned of additional financial measures against Tehran, as efforts to broker a ceasefire remain at an impasse.