ERBIL, Kurdistan Region of Iraq – US President Donald Trump said Tuesday that oil prices will fall “precipitously” if Washington wins its war against Iran, predicting gasoline prices in the US will eventually fall below $2 a gallon.

“Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran. Three Dollars a gallon, but ultimately, below Two Dollars a gallon,” Trump wrote on Truth Social.

“It will all happen quickly, and Iran will never have a Nuclear Weapon,” he added.

Iran has shut the Strait of Hormuz, a vital waterway through which roughly 20 percent of the world’s oil is transported, as part of its war against the US and Israel, contributing to a sharp rise in oil prices. The US has responded by imposing a naval blockade on Iranian ports, which Trump has said costs Iran $500 million a day.

Brent crude was trading at around $72 per barrel before the conflict, with prices rising to as high as $118 per barrel in May. Brent is around $98 at the time of writing this article.

Hostilities between the US and Iran flared Tuesday evening when the US Central Command (CENTCOM) announced that it was hitting Islamic Revolutionary Guard Corps (IRGC) targets in Iran following its alleged attempts to attack commercial ships.

The strikes were followed by a series of Iranian airstrikes targeting US interests across the Middle East, including the Kurdistan Region, Kuwait, Bahrain and Jordan.

Despite Trump’s insistence that the Strait of Hormuz is open for transit, shipping data shows that commercial passage through the strategic waterway remains significantly below pre-conflict levels amid ongoing Iranian restrictions.

Iran’s security chief Mohsen Rezaei on Sunday said a new “restricted zone” outside the Strait of Hormuz is set to be announced, “in the coming days.”

“This zone will start from the line of the US Navy's blockade and extend to areas in the Persian Gulf,” Rezaei said in an interview, stressing that any ship that enters the new restricted zone will be placed on a sanctions list.