U.S. President Donald Trump called on Americans to bear slightly higher gasoline prices as a means of preventing Iran from acquiring a nuclear weapon. He announced intentions to designate the Strait of Hormuz as U.S. territory. The President faces political risks as increased fuel costs clash with his energy cost reduction pledge, with Democrats aiming to capitalize on the economic implications of a potential conflict with Iran ahead of the midterm elections in November.
During a speech in Garden City, N.Y., Trump stressed the importance of paying a little more for gasoline in exchange for preventing a “very evil country” from obtaining nuclear weapons. He asserted that the actions taken were serving not just the U.S. but the world at large. Trump emphasized that he would not apologize for any actions taken against Iran.
Approximately 20% of global oil and LNG shipments traverse the Strait of Hormuz, leading to heightened oil prices due to the risk of prolonged disruptions. Trump hinted at declaring the Strait of Hormuz a U.S. territory once the conflict with Iran concludes, although the seriousness of this statement and its policy implications remain uncertain.
In response to Trump’s remarks, Kazem Gharibabadi, Iran’s deputy foreign minister, dismissed the notion that the strait could be controlled through tweets, military presence, or speeches. He insisted that Iran would retain command over the opening and closing of the strait.
The tensions surrounding the Strait of Hormuz continue to impact global energy markets, with Brent crude nearing $90 per barrel and U.S. gasoline prices hovering around $4 per gallon.