In a recent speech in New York, U.S. President Donald Trump called on Americans to accept slightly higher gasoline prices as tensions with Iran escalate and disruptions continue in the vital Strait of Hormuz. Trump emphasized that the marginal increase in fuel costs is a necessary sacrifice to prevent Iran from acquiring nuclear weapons. He also mentioned the possibility of declaring the Strait of Hormuz as “a territory of the United States” following a hypothetical defeat of Iran.
Iran responded to Trump’s statements by firmly rejecting his claims, maintaining its control over the strategic waterway. Deputy Foreign Minister Kazem Gharibabadi highlighted that Iran will persist with its blockade until the U.S. acknowledges what he described as the reality of its defeat. Meanwhile, Iranian Foreign Minister Abbas Araghchi stated that Tehran remains undecided about resuming negotiations with Washington, insisting that shipping through the strait will not resume unless Iran’s conditions are met.
The ongoing standoff has significantly affected tanker traffic through the Strait of Hormuz, a crucial passage for global oil and gas shipments. This disruption has led to increased crude prices, consequently raising fuel costs. In the U.S., the average gasoline price has climbed to approximately $4.08 per gallon, reflecting a 29% rise from the previous year. Brent crude prices are also experiencing a notable weekly increase amid the tensions.
On the other side, the economic impact is being felt in Iran as well. Iranian President Masoud Pezeshkian has attributed the country’s rising inflation to the U.S. blockade, sanctions, and restrictions on Iranian oil exports. The Trump administration has indicated the possibility of imposing further financial measures against Tehran as attempts to broker a ceasefire remain at a standstill.