Oil prices climbed as both the United States and Iran publicly asserted control of the Strait of Hormuz, prolonging a squeeze on maritime traffic through a passage that handled about 20% of the worlds traded oil before the war. The competing claims coincide with continued below-prewar flows and fresh spikes in fuel costs across several countries.
Ships were visible in the strait on Saturday while the Trump administration pushed the narrative that the US Navy is ensuring passage. President Donald Trump and his aides said the Gulf had returned close to prewar throughput. Vice President JD Vance told reporters on Thursday that US forces escorted roughly 15 million barrels of oil on Wednesday, and Energy Secretary Chris Wright told CNBC that 17 million barrels moved through the strait on Monday with US naval assistance. Independent marine-traffic firms nonetheless report that overall ship movements remain well under the levels recorded before hostilities began.
The renewal of US attacks on targets in Iran and reciprocal strikes from Tehran this week has interrupted the slow recovery of commercial shipping, industry watchers say. Those operations, combined with the diplomatic standoff over who controls the waterway, have contributed to higher wholesale and retail fuel prices.
Markets have already felt the pressure. Diesel in the United States rose to an average of $5.85 a gallon, the highest since the conflict began, while UK petrol reached 163p per litre, a six-month peak. The recent escalation has produced fresh rounds of price increases in several countries, compounding economic pain for consumers and transport operators.
For now, the competing assertions by Washington and Tehran leave the straits status unsettled, with commercial passage below historic levels and volatility in oil and fuel markets likely to persist while military and diplomatic tensions continue.
