President Donald Trump has called on Americans to accept a slight increase in gasoline prices as tensions with Iran escalate, particularly affecting the strategic Strait of Hormuz. During a rally in New York, Trump emphasized that paying a bit more at the pump is justified if it prevents Iran from acquiring nuclear weapons. He also suggested the possibility of declaring the Strait of Hormuz as U.S. territory following a defeat of Iran.
In response, Iranian officials dismissed Trump’s remarks, maintaining that the Strait will remain under Iranian control. Deputy Foreign Minister Kazem Gharibabadi stated that Iran would continue to enforce the blockade until the United States acknowledges what he described as Iran’s victory. Meanwhile, Iranian Foreign Minister Abbas Araghchi indicated that Tehran has not yet decided to resume talks with Washington and made it clear that shipping through the strait would not recommence unless the U.S. meets Iran’s terms.
The stalemate has significantly disrupted tanker traffic through the Strait of Hormuz, a crucial passage for global oil and natural gas supplies, contributing to rising crude prices and increased fuel costs. The average price of gasoline in the U.S. has climbed to approximately $4.08 per gallon, marking a 29% increase compared to the previous year. Brent crude prices are also experiencing a notable weekly rise.
In Iran, the economic consequences are palpable, with President Masoud Pezeshkian attributing the country’s soaring inflation to the U.S.-imposed blockade, sanctions, and restrictions on Iranian oil exports. Amid these tensions, the Trump administration has warned of additional financial measures against Tehran as diplomatic efforts to broker a ceasefire remain at an impasse.