US President Donald Trump has called on Americans to brace themselves for slightly increased gasoline prices amid ongoing tensions with Iran, which have disrupted shipping through the crucial Strait of Hormuz. Addressing a rally in New York, Trump emphasized that paying “a tiny little bit more” for gasoline is a worthwhile trade-off to prevent Iran from developing nuclear weapons. He even floated the idea of declaring the Strait of Hormuz as “a territory of the United States” if Iran is defeated.
Iran, however, has dismissed Trump’s remarks, maintaining its control over the waterway. Deputy Foreign Minister Kazem Gharibabadi stated that the blockade will persist until Washington acknowledges what he termed as America’s defeat. Meanwhile, Iranian Foreign Minister Abbas Araghchi noted that Tehran has not yet decided to resume talks with the US and insisted that shipping will not resume through the strait unless the US meets Iran’s demands.
The standoff has significantly affected tanker traffic through the Strait of Hormuz, which is vital for global oil and natural gas transport. This has led to a rise in crude prices, which, in turn, has elevated fuel costs. The average gasoline price in the US has surged to approximately $4.08 per gallon, marking a 29% increase from the previous year. Brent crude prices are also heading for a notable weekly increase.
The economic repercussions are not confined to the US. In Iran, President Masoud Pezeshkian has attributed the rise in inflation to the US-imposed blockade, sanctions, and restrictions on Iranian oil exports. Amid these tensions, the Trump administration has warned of imposing further financial constraints on Tehran as diplomatic efforts to establish a ceasefire remain at an impasse.