Iran’s new Supreme Leader has used his first statement to threaten ongoing oil chaos for Americans as he seeks to “avenge the blood” of his family being assassinated in Donald Trump’s war.
As gas prices continue to spike, Mojtaba Khamenei declared on Thursday that the Strait of Hormuz—the most vital oil chokepoint in the world—would continue to be used as “a tool to pressure the enemy,” setting the scene for U.S. consumers to feel even more pain at the pump.
Khamenei also warned that all U.S. military bases in the Middle East should close immediately as “those bases will be attacked,” fueling fears of casualties mounting as strikes escalate across the Gulf.
The comments were the first made by the new Supreme Leader since being elevated on March 9, an appointment Trump admitted was “disappointing” after U.S.-Israeli strikes took out his dictator father, Ayatollah Ali Khamenei.
Trump had also wanted a say in picking Iran’s new leader, telling Reuters last week: “We’re going to have to choose that person along with Iran.”
But this did not happen, and global markets have spent the past few days roiling as energy flows in the Strait of Hormuz have come to a halt.
In another ominous sign for the president, the International Energy Agency, a global authority on oil and gas supply, also warned that conditions would worsen unless shipping traffic resumes quickly.
“The war in the Middle East is creating the largest supply disruption in the history of the global oil market,” the agency said in a report released Thursday.
Khamenei’s purported statement was read on state television by a female anchor, with a banner displaying his face, but he did not appear on camera.
The 56-year-old hardline cleric was injured in the initial strikes, according to Iranian and Israeli officials, but the full circumstances and extent of his injuries are unclear. His mother, wife, and daughter were also killed.
But as the war entered its 13th day, and as markets tumbled following the Khamenei’s remarks, Trump sought to put his own spin on skyrocketing prices, declaring on Truth Social that the surging cost of oil was actually a good thing.
“The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money,” Trump declared.
“BUT, of far greater interest and importance to me, as President, is stoping [sic] an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and, indeed, the World. I won’t ever let that happen!”
Energy Secretary Chris Wright also sought to allay fears, insisting that using the U.S. Navy to escort ships through the Strait was one option being considered.
“It will happen relatively soon, but it can’t happen now. We’re simply not ready,” Wright said during an interview on CNBC’s “Squawk Box.”
The Strait is a narrow passage between Iran and Oman through which roughly a fifth of the world’s oil supply typically flows.
However, global trade has come to a screeching halt since Trump began the war in February as tankers with large volumes of crude have largely avoided the waterway amid missile threats, naval clashes and the growing risk of mines.
Iran’s determination to use the Strait as ongoing leverage is an ominous sign for America, and for a president who came to office promising to reduce cost-of-living pressures.
“When I win, I will immediately bring prices down, starting on Day 1,” he said during the 2024 election campaign.
However, the average price of gas was $3.60 per gallon on Thursday, according to GasBuddy.com. The average price for diesel hit $4.86 per gallon.
Behind the scenes, some of Trump’s advisers are urging him to articulate a clearer exit strategy for the war, concerned about the political and economic fallout if the conflict drags on.
Brig. Gen. Mark Kimmitt, a former assistant secretary of state, said if he were advising Trump, he would suggest the president find an end game immediately.
“In many ways, this war will end when the Iranians want it to end,” Kimmitt told CNN.
“We may stop the military operations, but in terms of winning this war or finishing this war, it’s more up to the Iranians than it is us.”
Trump, however, insists the war, which he described as a “little excursion” is going well.
“We’re just riding free range over that country,” he said on on Tuesday night. “The Straits are in great shape.”
