Trump’s position has shifted between warnings of further escalation and statements suggesting that a potential peace agreement could be close. So far, however, negotiations have not produced a lasting breakthrough.

President Donald Trump is telling Americans to prepare for gasoline prices to remain elevated as the conflict with Iran continues, while Tehran is making clear that it has no intention of backing down over control of the Strait of Hormuz.

The dispute over the strategically important waterway remains one of the biggest obstacles to ending the conflict. Oil tanker traffic through the strait has remained severely restricted, while efforts to restart peace negotiations have shown little progress.

Iranian Deputy Foreign Minister Kazem Gharibabadi said Saturday that the United States must accept what he described as defeat before Iran will reconsider its position on the waterway. He argued that the Strait of Hormuz cannot simply be taken over through military power or presidential declarations.

Iranian Foreign Minister Abbas Araqchi also said Tehran has not decided whether to resume negotiations with Washington. He indicated that Iran wants the United States to meet specific conditions involving the strait before normal shipping can resume.

The standoff has significant consequences for the global energy market. Before the war, approximately one-fifth of the world’s oil supply passed through the Strait of Hormuz, making any prolonged disruption a major concern for energy markets and consumers.

Trump, meanwhile, has acknowledged that Americans are paying more at the pump and urged them to accept the higher costs as part of the price of confronting Iran.

Speaking at a rally in New York on Friday, Trump argued that paying somewhat more for gasoline is worthwhile if it prevents Iran from obtaining a nuclear weapon, one of the reasons he has cited for the military campaign.

Trump also made another dramatic claim about the future of the waterway, saying that after Iran is defeated, he intends to declare the Strait of Hormuz a U.S. territory. He did not explain how such a move would overcome the existing territorial and international legal arrangements involving the waterway.

Gasoline prices have already risen sharply compared with a year ago. The average U.S. price was approximately $4.08 per gallon Friday, representing a 29% increase from the same time last year.

That increase creates a political problem for Trump, who campaigned on lowering energy costs. Democrats are expected to use higher gasoline prices and the economic effects of the Iran conflict as an issue heading into the November congressional elections.

Oil markets have also reacted to the continuing uncertainty. Crude prices increased by roughly $1 per barrel Friday, while Brent crude was on track for a weekly gain of about 6% and West Texas Intermediate was heading toward a gain of approximately 5.4%.

Iran has responded with increasingly forceful rhetoric of its own. Gharibabadi said Tehran would continue enforcing the blockade until Washington accepts Iran’s conditions, signaling that the dispute over the waterway remains far from resolved.

Iran is also feeling the economic consequences of the conflict. Iranian President Masoud Pezeshkian has blamed rising inflation on the U.S. blockade of Iranian ports and restrictions on Iranian oil exports.

With both sides refusing to concede, the Strait of Hormuz remains a major flashpoint. For Americans, the most immediate consequence may be the price at the gas pump, with no clear indication yet that fuel costs will return to lower levels while the conflict and shipping disruption continue.