Amid ongoing tensions with Iran, U.S. President Donald Trump has called on the nation to accept a minor increase in gasoline prices due to the disruptions at the Strait of Hormuz. Addressing supporters at a rally in New York, Trump emphasized that paying “a tiny little bit more” is a necessary sacrifice to prevent Iran from acquiring nuclear weapons. He even suggested the possibility of declaring the strategic strait “a territory of the United States” in the event of overcoming Iran.
In response, Iran has firmly dismissed Trump’s remarks, with Deputy Foreign Minister Kazem Gharibabadi asserting that the waterway will remain under Iranian control. Gharibabadi stated that Iran will persist in enforcing the blockade until the U.S. acknowledges what he termed the reality of its defeat. Meanwhile, Iranian Foreign Minister Abbas Araghchi indicated that Tehran has yet to decide on resuming negotiations with Washington, stipulating that shipping through the strait will only recommence if the U.S. meets Iran’s conditions.
The impasse has led to significant disruptions in tanker traffic through the Strait of Hormuz, a crucial channel for global oil and natural gas shipments, thereby contributing to rising crude prices and heightened fuel costs. As a result, the average gasoline price in the U.S. has climbed to approximately $4.08 per gallon, marking a 29% increase from the previous year. Brent crude prices are also experiencing a notable weekly surge.
The economic repercussions of the standoff extend to Iran, where President Masoud Pezeshkian has attributed the country’s soaring inflation to the U.S. blockade, sanctions, and the restrictions on Iranian oil exports. Concurrently, the Trump administration has warned of potential additional financial sanctions against Tehran, as efforts to broker a ceasefire remain at an impasse.