In light of ongoing tensions with Iran and the resulting disruption in the Strait of Hormuz, U.S. President Donald Trump has called on Americans to accept slightly elevated gasoline prices. Speaking at a rally in New York, Trump emphasized that paying “a tiny little bit more” at the pump is a necessary trade-off to prevent Iran from acquiring nuclear weapons. He also suggested the possibility of declaring the Strait of Hormuz as “a territory of the United States” following a successful confrontation with Iran.
In response to Trump’s remarks, Iran has firmly rejected any U.S. claims over the strategic waterway. Deputy Foreign Minister Kazem Gharibabadi stated that Iran will continue to maintain its control over the strait, enforcing a blockade until the United States acknowledges what Iran views as its defeat in the region. Iranian Foreign Minister Abbas Araghchi further asserted that Tehran has not yet decided to resume negotiations with Washington, indicating that shipping through the Strait of Hormuz will remain halted unless the U.S. meets Iran’s conditions.
The standoff has significantly affected 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, increasing the pressure on fuel costs. Currently, the average gasoline price in the U.S. has surged to approximately $4.08 per gallon, marking a 29% increase from the previous year. Brent crude prices are also experiencing notable weekly gains, reflecting the market’s response to the geopolitical turmoil.
Iran is also feeling the economic strain from the situation. Iranian President Masoud Pezeshkian attributes the escalating inflation within the country to the U.S.-imposed blockade, along with sanctions and restrictions on Iranian oil exports. Meanwhile, the Trump administration has hinted at the possibility of imposing further financial measures against Tehran, as diplomatic efforts to achieve a ceasefire remain at an impasse.