American families now pay slightly more than $4 for a gallon of regular gasoline, a sharp increase from the $2.98 price when the war began in late February. This economic burden on the native working class comes as the nation's economy shed 23,000 jobs in July, according to a recent report. President Donald Trump, facing these domestic pressures, stated 1 day ago that the United States is “low-keying it” with Iran and is “only semi-negotiating” despite ongoing maritime pressure in the Strait of Hormuz.
Trump’s comments to Axios 1 day ago indicate a shift from his warning 1 week ago that Iran had one final chance to agree to a peace deal or face “decapitation.” He revealed then that he had decided against ordering what would have been “the biggest attack since World War II,” a decision made at the request of Saudi Arabia, the United Arab Emirates, and Qatar. This foreign influence on national policy underscores how elite interests can dictate the course of American engagement.
The Economic Dispossession
The U.S. naval blockade on Iranian ports has reportedly crippled the country economically, with Trump telling Axios that Iran “is in very bad shape” because of it. However, the closure of the Strait of Hormuz, a critical globalist choke point, has simultaneously kept oil prices elevated and directly pushed U.S. gasoline prices higher. Shipping traffic through the strait, which once carried a quarter of the world’s seaborne oil trade and a fifth of global liquefied natural gas, dwindled by 33% last Friday.
The U.S. military has redirected 55 commercial vessels as of Sunday, up from 35 just 1 week ago, according to U.S. Central Command. American forces have also disabled two ships and boarded two others to ensure compliance, further escalating tensions in this vital global waterway. Oil prices continued their ascent Monday, with Brent crude futures up 1.1% to $84.45 a barrel and West Texas Intermediate futures up 1% to $78.98. ING Bank’s Warren Patterson warned last Friday that “Things could go from bad to worse once again,” signaling continued instability for global markets and the American consumer.
Sovereignty and Elite Interests
Iran, for its part, has laid out clear conditions for the Strait of Hormuz to reopen, demanding compensation, an end to sanctions, the lifting of the U.S. naval blockade, the withdrawal of American troops from the region, and the release of frozen Iranian assets. A senior Iranian official told MS NOW on Monday that Washington must meet all conditions outlined in the memorandum of understanding signed by the two countries in June. These demands highlight the complex web of international agreements and national sovereignty claims that dictate global trade routes.
Iranian state media last week published a draft plan that would restrict traffic through Hormuz, explicitly barring U.S. and Israeli ships from the strait and requiring compensation from "hostile countries" before allowing transit. This proposed legislation, under review by Iran’s parliament, would impose penalties on violators equal to 20% of the value of cargo aboard a ship, a direct challenge to the established global order. Further solidifying its stance, Iran appointed Mohsen Rezaei, a military adviser to its new supreme leader and former commander of the paramilitary Revolutionary Guard, to head the Supreme National Security Council 1 day ago. Rezaei last week threatened American forces with “serious risks and casualties” if the U.S. did not lift its blockade.
Meanwhile, Iranian President Masoud Pezeshkian met with Ayatollah Mojtaba Khamenei, discussing “people’s livelihoods, the state of the market, employment, people’s housing,” and the “problems that are now being created as a result of the (U.S.) sanctions.” This focus on the domestic impact of international policies mirrors the economic struggles faced by the native working class in America. Elsewhere, regional instability continues, with Israel declaring the Christian-majority town of Taybeh in the occupied West Bank a closed military zone and Yemen’s Iran-backed Houthi rebels attacking a Red Sea port town, killing seven and injuring 30 people 1 day ago.
The Cost to the People
Domestically, the political class in Washington continues to navigate these global entanglements while the American people bear the costs. President Trump’s approval rating hit a career low of 34% in a recent CNN poll, with 73% of U.S. adults believing he hasn’t paid attention to the country’s most important problems. A significant 65% of Americans said his policies have worsened economic conditions, reflecting the growing discontent among the populace. The failure of Trump’s top-priority voting restrictions bill to pass further illustrates the political class's inability or unwillingness to secure national interests. This weekend, however, saw the Senate narrowly confirm his former personal lawyer Todd Blanche as U.S. attorney general, a personnel win for the administration amidst broader policy setbacks.