U.S. President Donald Trump called on Americans to accept a slight increase in gasoline prices to prevent Iran from acquiring nuclear weapons. He hinted at declaring the Strait of Hormuz as U.S. territory soon. This stance presents a political challenge for Trump as he balances rising fuel costs with his pledge to reduce energy expenses, with Democrats aiming to capitalize on the economic implications of potential conflict with Iran in the upcoming midterm elections.
During a speech in Garden City, N.Y., Trump emphasized the necessity of paying a bit more for gasoline to thwart the nuclear ambitions of what he described as “a very evil country.” He defended his actions, stating that the U.S. is serving the world’s interests and highlighted his resolute stance against Iran.
Approximately 20% of global oil and LNG shipments pass through the strategic Strait of Hormuz, leading to concerns about oil price spikes due to potential disruptions. Trump’s strong rhetoric included a statement about potentially declaring the Strait as U.S. territory after dealing with Iran, although the seriousness of this assertion and its policy implications remain unclear.
In response to Trump’s remarks, Iranian deputy foreign minister Kazem Gharibabadi dismissed the notion of the U.S. seizing control of the strait through various means, asserting that Iran holds the authority to open and close the waterway.
As tensions persist in the region, the Strait of Hormuz remains a significant focal point for global energy markets. Oil prices have surged, with Brent crude nearing $90 per barrel and U.S. gasoline prices approaching $4 per gallon.
