US President Donald Trump’s latest address, reaffirming an expansion of the war on Iran, has intensified pressure on global energy markets and is expected to translate into sharply higher fuel costs for American consumers, Reuters reported on Wednesday.
The speech came amid widespread expectations that Washington might outline steps toward de-escalation or a plan to restore shipping through the Strait of Hormuz, a strategic waterway through which roughly one-fifth of global oil supplies pass. Instead, Trump vowed to bomb Iran back into the "Stone Ages" and said the strait would just open "naturally" when the war ends.
The remarks reinforced market concerns that the disruption, triggered by US-Israeli aggression and Iran’s retaliatory measures in the waterway, will persist. Oil prices surged immediately, with US crude jumping more than 10%, as traders priced in prolonged instability and constrained supply.
The Strait of Hormuz crisis remains central to the unfolding energy shock. The waterway, which handles about 20% of global oil flows, has seen severe disruption, with tanker traffic reduced and supply chains strained as the confrontation continues.
Diesel costs rising
Analysts say the consequences are now feeding directly into US fuel markets. Speaking to Reuters, Patrick De Haan noted that gasoline prices, already above $4 per gallon for the first time since 2022, are expected to rise further to between $4.25 and $4.45 in the near term.
He warned that if Washington continues its military course without a viable plan to stabilize maritime flows, prices could exceed $5 per gallon and reach record highs within weeks.
Wholesale markets have already begun adjusting. Tom Kloza, chief energy adviser at Gulf Oil, reported increases of up to 17 cents per gallon across major US regions, with even sharper gains in the Gulf Coast, reflecting tightening supply conditions across the system.
Diesel prices, which underpin the cost of transporting goods and industrial production, are also projected to surge. De Haan said the national average could climb from $5.47 per gallon to between $5.80 and over $6 within two weeks, approaching historic highs.
Economic fallout
Beyond fuel costs, the broader economic implications are mounting. The war on Iran has disrupted global trade flows and energy markets, contributing to inflationary pressures and raising concerns about slower growth if the war persists.
As Washington continues escalating its war on Iran without a diplomatic pathway, US consumers face growing economic fallout from a war they did not ask for.
Source:Websites
