President Trump encouraged Americans to accept slightly higher gasoline prices as a means of deterring Iran from acquiring nuclear weapons. He mentioned plans to designate the Strait of Hormuz as U.S. territory. This poses a political challenge for Trump as increased fuel costs clash with his pledge to reduce energy expenses, drawing attention from Democrats ahead of the midterm elections.
During a speech in Garden City, N.Y., Trump emphasized the importance of paying a bit more for gasoline to prevent a “very evil” country like Iran from possessing nuclear capabilities. He defended his actions, stating that the U.S. was serving a global interest and doing a commendable job, refusing to apologize for confronting Iran.
Around 20% of worldwide oil and LNG shipments typically traverse the Strait of Hormuz, leading to heightened oil prices due to concerns about potential disruptions. Trump hinted at declaring the Strait as U.S. territory after dealing with Iran, though the seriousness of his statement and its implications on policy were uncertain.
In response to Trump’s comments, Iran’s deputy foreign minister, Kazem Gharibabadi, dismissed the idea of the U.S. controlling the strait, affirming that Iran alone had authority over its status. The strategic significance of the Strait of Hormuz in global energy markets persists, with oil prices rising, nearing $90 per barrel for Brent crude and around $4 per gallon for U.S. gasoline.
