In light of the ongoing conflict with Iran and the disruption of shipping through the vital Strait of Hormuz, US President Donald Trump has called on Americans to accept a slight increase in gasoline prices. Addressing supporters at a rally in New York, Trump emphasized that the modest rise in fuel costs is justified as part of efforts to prevent Iran from acquiring nuclear weapons. He also floated the idea of declaring the Strait of Hormuz as a US territory following a hypothetical victory over Iran.
The Iranian government has dismissed Trump’s assertions, maintaining its control over the strategic waterway. Deputy Foreign Minister Kazem Gharibabadi stated that Iran would continue to enforce its blockade until the United States acknowledges what he described as Iran’s victory. Meanwhile, Iranian Foreign Minister Abbas Araghchi mentioned that Tehran has not yet decided to reopen negotiations with Washington. He added that shipping through the strait would not resume unless the US meets Iran’s stipulated conditions.
The standoff has led to significant disruptions in tanker traffic through the Strait of Hormuz, a critical channel for global oil and natural gas shipments. This uncertainty has contributed to a rise in crude oil prices, subsequently impacting fuel costs. The average price of gasoline in the US has climbed to approximately $4.08 per gallon, marking an increase of about 29% compared to the previous year. Moreover, Brent crude prices are poised for a notable weekly gain.
The economic repercussions are also being felt within Iran. Iranian President Masoud Pezeshkian has attributed the country’s rising inflation to the US blockade, sanctions, and limitations on Iranian oil exports. Concurrently, the Trump administration has warned of imposing further financial sanctions on Tehran as efforts to negotiate a ceasefire continue to face obstacles.