President Trump called on Americans to accept higher gasoline prices as a means to prevent Iran from acquiring nuclear weapons and announced intentions to designate the Strait of Hormuz as U.S. territory. This move by Trump faces political risks as it clashes with his pledge to reduce energy costs, with Democrats poised to leverage the economic impacts of potential conflict with Iran in the upcoming midterm elections.
During a speech in Garden City, N.Y., Trump emphasized the importance of paying slightly more for gasoline to safeguard against a nuclear-armed “evil country.” He defended his actions by stating that the U.S. was serving the greater good and asserted that he would not apologize for confronting Iran.
Approximately 20% of global oil and LNG shipments pass through the Strait of Hormuz, leading to concerns of oil price hikes due to potential disruptions. Trump indicated a plan to declare the strait as U.S. territory post the defeat of Iran, heightening tensions over the strategically vital waterway, although the seriousness of this statement remains uncertain.
In response to Trump’s remarks, Iranian official Kazem Gharibabadi, Iran’s deputy foreign minister, dismissed the notion of the strait being controlled by external forces and asserted that Iran would retain authority over its access. The situation in the Strait of Hormuz continues to impact global energy markets, with Brent crude nearing $90 per barrel and U.S. gasoline prices approaching $4 per gallon.