Iran Rebuffs Trump Hormuz Claim as Ship Struck in Strait
Key Points
- Iran's Deputy Foreign Minister Kazem Gharibabadi said Friday the Strait of Hormuz "has been Iranian, is Iranian, and will remain Iranian" and cannot be seized by Trump.
- A bulk carrier was struck by an unknown projectile in the strait on Saturday, according to the UK Maritime Trade Operations Centre.
- U.S. gasoline prices averaged $4.07 per gallon on Saturday, up from $3.15 a year earlier, as Trump said Americans must tolerate higher fuel costs during the conflict with Iran.
Diplomatic Breakdown and Escalating Tensions
Diplomacy remains stalled between the two sides. Iranian Foreign Minister Seyed Abbas Araghchi said early Saturday that "no negotiations have been held between us and the United States at this time," according to Iranian news outlet Shahrara News. Araghchi confirmed that Qatar and Pakistan are exchanging messages between the parties but cautioned that "this does not mean negotiations."
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This represents a continuation of the breakdown that followed the collapse of an interim ceasefire in June. Since then, shipping in the strait has repeatedly come under fire from Iranian projectiles, with the U.S. striking Iranian targets as part of a port blockade.
On Saturday, the United Kingdom Maritime Trade Operations Centre, an organization backed by the British Navy, reported receiving a verified account of a bulk carrier "being struck by an unknown projectile which has hit the hull," adding to the escalating risks for commercial shipping in the waterway.
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Treasury Secretary Scott Bessent said Thursday the U.S. would apply economic measures "that have never been seen on Iran," describing a planned "combination of economic isolation like the world has never seen before, and the continued blockade in the Strait of Hormuz that will keep anything from going in or out of the Iranian ports."
U.S. Defense Secretary Pete Hegseth told reporters late Thursday that the military can sustain the naval blockade of Iran "indefinitely," with the Navy rotating ships in and out of position. The USS George Washington strike group departed Vietnam on Aug. 12 to relieve the USS Abraham Lincoln, which has been deployed for more than 250 days in the Middle East after its tour was extended beyond its May conclusion date.
Energy markets remain elevated compared to pre-war levels. The average U.S. gasoline price stood at $4.07 per gallon on Saturday, compared to $3.15 per gallon a year earlier. Trump told supporters Friday that Americans would need to accept higher fuel prices to prevent Iran from obtaining nuclear weapons and sponsoring terrorism, framing the cost as necessary for national security.
Why this matters: The stalled negotiations, combined with repeated attacks on commercial shipping and expanding military commitments from both sides, suggest the conflict could persist for an extended period. At current deployment rotation rates—with the USS Abraham Lincoln surpassing 250 days already—the U.S. commitment to maintaining the blockade indefinitely suggests major naval resources will remain tied to the region for months or years, with corresponding pressure on global shipping lanes and energy prices for American consumers.
Market Outlook
Negotiations remain unlikely in the near term given the hardened rhetoric from both sides and absence of direct talks. The U.S. blockade will likely persist through at least 2025 unless Iran capitulates on nuclear demands. Gasoline prices may remain elevated at $3.80–$4.20 per gallon throughout the conflict, pressuring consumer spending and inflation metrics that the Federal Reserve monitors.
Sources: CNBC and other international news outlets.
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