As tensions with Iran continue to escalate, U.S. President Donald Trump has called on Americans to accept a modest increase in gasoline prices, emphasizing that this is a necessary cost to prevent Iran from acquiring nuclear weapons. Speaking at a recent rally in New York, Trump suggested that paying “a tiny little bit more” at the pump is worth it to secure national and global security. He also floated the idea of declaring the Strait of Hormuz, a critical chokepoint for global oil shipments, as “a territory of the United States” following a hypothetical defeat of Iran.
The situation has led to disruptions in tanker traffic through the Strait of Hormuz, significantly impacting the flow of oil and natural gas worldwide. This disruption has contributed to a rise in crude oil prices, subsequently driving up the cost of gasoline. Currently, the average price of gasoline in the U.S. has climbed to approximately $4.08 per gallon—an increase of about 29% compared to the previous year. Brent crude prices are also experiencing a notable weekly rise due to the ongoing uncertainty.
Iran, meanwhile, has firmly dismissed Trump’s assertions, with Deputy Foreign Minister Kazem Gharibabadi stating that Iran will maintain its control over the strategic waterway. He indicated that Iran would continue its blockade until the U.S. acknowledges what he termed as the reality of its defeat. Iranian Foreign Minister Abbas Araghchi also conveyed that Tehran has yet to decide on resuming negotiations with the U.S., maintaining that shipping through the strait will not recommence unless Washington meets specific Iranian conditions.
The economic repercussions of this standoff are being felt on both sides. In Iran, President Masoud Pezeshkian has attributed the country’s rising inflation to the U.S. blockade, along with ongoing sanctions and restrictions on Iranian oil exports. On the U.S. side, the Trump administration has threatened further financial measures against Tehran as diplomatic efforts to reach a ceasefire remain at an impasse.