US Shifts Priority to Low Oil Prices Over Iran Nuclear Issue, Vice‑President Vance Says
In a Fox News interview, Vice‑President JD Vance placed keeping gasoline affordable ahead of preventing Iran’s nuclear weapons programme, while Treasury officials warn the Strait of Hormuz closure gives Tehran a powerful bargaining chip.
Vice‑President JD Vance told Fox News that the United States now ranks keeping oil prices low above the Iranian nuclear question. He said the fall in fuel costs since the early days of the conflict is the most important achievement, adding that the top U.S. goal is to keep gasoline affordable for American families and the second goal is to stop Iran obtaining a nuclear weapon.
Economic pressure as the main lever
Treasury Secretary Scott Bessent warned that Iran’s recent closure of the Strait of Hormuz – a waterway that moves roughly 20 % of global petroleum supplies – gives Tehran a bargaining position “like the world has never seen before”. The strait was open when President Donald Trump launched the conflict with Iran and Israel in late February, but Iran shut it in retaliation, sending fuel prices higher and sparking political criticism of the war at home.
Higher fuel prices have eroded public support for the war ahead of the November mid‑term elections, and analysts say a prolonged standoff could keep oil markets volatile, dent global economic growth and influence voter attitudes.
Sanctions and diplomatic signals
Bessent suggested a new round of sanctions could be imposed on Iran, with details expected to be released next week. The Treasury department believes that sustained economic pressure may compel Tehran to negotiate while the nuclear issue remains on the agenda.
President Trump told Axios the administration is conducting negotiations “low‑keying”, while monitoring Iran’s inflation and dwindling cash reserves. He also noted that the United States is depleting its inventory of advanced missiles, limiting options for further strikes.
Iran’s reopening demands and U.S. response
Iran has set conditions for reopening the Strait of Hormuz, including an end to hostilities, lifting the U.S. blockade, removal of sanctions, release of frozen assets and compensation for war damage. The White House is considered unlikely to accept these terms.
Analysts anticipate the United States will increase economic pressure while maintaining limited diplomatic contact. If Iran does not concede, the United States may face a long‑lasting standoff that could keep oil markets unstable and affect the FTSE 100, which has already slipped in line with the conflict.
Vance summed up the administration’s stance, noting that oil prices have fallen compared with the early stage of the conflict and that “goal number one” is keeping fuel cheap for families, while “goal number two” remains preventing a nuclear‑armed Iran.
