WASHINGTON
WASHINGTON — The United States and a country called Iran are in a fight. The US Navy is using its ships to block Iran's boats from leaving. Many of the world's
ships carry oil through that water. When less oil moves around, gas costs more money. Leaders are trying to
talk and stop the fight.
Why it matters: When gas costs more, it costs your family more to drive the car.
WASHINGTON
WASHINGTON — The United States and Iran have been at war since earlier this summer. Now the US is trying a new way to win. On Wednesday, President Trump promised to hurt Iran with money and trade instead of only soldiers. The US Navy is blocking ships from leaving Iran's ports. Those ports sit on the Strait of Hormuz, a narrow strip of sea. Much of the world's oil passes through it. With less oil moving, the price of oil rose about 2 percent this week. Leaders from both countries have talked about a deal. They have not reached one yet.
Why it matters: When oil costs more, the gas your family buys for the car usually costs more too.
WASHINGTON
WASHINGTON — President Trump escalated the United States' campaign against Iran on Wednesday, promising what he called "economic warfare" — a push to choke off Iran's ability to sell oil and move money, rather than relying on military force alone. The threat sent global oil prices up roughly 2 percent, their highest in nearly a month, as traders worried about supply.
At the center of the standoff is the Strait of Hormuz, a narrow channel between Iran and the Arabian Peninsula. About a fifth of the world's oil normally passes through it. A US naval blockade has kept dozens of vessels from entering or leaving Iranian ports since operations resumed in mid-July. Iran dismissed the pressure as a distraction and insisted it still holds leverage over the strait it borders.
The squeeze is tightening on other fronts too. The United Arab Emirates, a major regional trading hub, announced it would suspend all trade and financial dealings with Iran. Allies across the region are being pressed to pick a side.
Talks between the two governments have started and stalled more than once. As of Thursday, no deal was in place, and each side accused the other of refusing to negotiate seriously. More than 750 American service members have been wounded since the war began, according to Defense Department figures — a reminder that the fighting goes on even as the fight shifts toward money and markets.
The war began earlier in the summer after a US-Iran agreement collapsed. Oil markets have swung on every headline since, because the Strait of Hormuz has no easy alternative route — pipelines can carry only a fraction of what tankers move. That geography is why a regional conflict shows up at gas stations worldwide.
Why it matters: Economic pressure is meant to force Iran to the table without more fighting, but it also raises energy prices for ordinary people far from the war, including American drivers — a cost leaders rarely mention when they announce it.
What to watch: Whether the on-again, off-again talks produce a framework, and how far oil prices climb if the blockade holds into September.
Sources: CNN, CNBC, Reuters, UPI
Published in Thursday, August 20, 2026 edition.