In response to the ongoing conflict with Iran and the resulting disruption to shipping through the vital Strait of Hormuz, US President Donald Trump has called on Americans to tolerate slightly increased gasoline prices. During a rally in New York, Trump emphasized that paying “a tiny little bit more” for fuel is a necessary sacrifice to prevent Iran from developing nuclear weapons. He also mentioned the possibility of declaring the Strait of Hormuz as “a territory of the United States” following a victory over Iran.
Iran has firmly rejected Trump’s statements, maintaining that the Strait of Hormuz will remain under its jurisdiction. Deputy Foreign Minister Kazem Gharibabadi stated that Iran would continue to enforce its blockade of the waterway until the United States acknowledges what he described as its defeat. Meanwhile, Iranian Foreign Minister Abbas Araghchi indicated that Tehran has not yet decided to re-enter negotiations with the US. He asserted that normal shipping operations through the strait would not resume unless Washington accedes to Iran’s conditions.
The deadlock has caused significant disruptions to tanker traffic in the region, a critical corridor for global oil and natural gas transportation. This uncertainty has driven crude oil prices higher, consequently putting upward pressure on fuel costs. In the US, the average price of gasoline has risen to approximately $4.08 per gallon, marking an increase of about 29% from the previous year. Brent crude prices have also shown a substantial weekly rise, reflecting the tensions.
Iran is also experiencing economic strain as a result of the situation. Iranian President Masoud Pezeshkian has attributed the country’s rising inflation to the US-imposed blockade, along with sanctions and limitations on Iranian oil exports. In turn, the Trump administration has issued threats of further financial measures against Tehran, as diplomatic efforts to achieve a ceasefire remain at an impasse.