US President Donald Trump has declared the Strait of Hormuz a "new US territory," intensifying tensions with Iran as global oil prices remain elevated nearly six months into the war between the two countries.
Trump posted an image on his Truth Social account on Tuesday showing the waterway circled on a map and labelled "NEW U.S. Territory," without accompanying comment. The post followed remarks he made last week at an event in Garden City, New York, where he said he would soon be declaring the strait a US territory, citing the naval blockade the US has maintained over the waterway.
Iran's Deputy Foreign Minister, Kazem Gharibabadi, dismissed the claim, saying the Strait of Hormuz cannot be seized by tweet, aircraft carrier, executive order or campaign speech, and that Iran neither fears threats nor bows to displays of power.
Roughly 20 per cent of global oil supply typically transits the strait, which lies between Iran and Oman. Shipping traffic has collapsed since fighting escalated in February, falling to as few as eight to fifteen vessels a day in early August, compared with about 130 daily transits before the conflict.
Brent crude was trading around $87 to $90 a barrel last week, with West Texas Intermediate near $82, after Washington threatened to maintain its naval blockade of Iran indefinitely. The prices mark a 16 to 24 per cent rise since the war began but remain below the $100-plus levels recorded in March. The US Energy Information Administration does not expect Middle East oil production to return to near pre-conflict levels until early 2027, and projects Brent will average $87 a barrel for the year.
Trump also posted separately on Tuesday that the strait was open and operating, with all water mines removed or detonated, and that the naval blockade remained in full force despite Iran's continued insistence that it stays closed until US sanctions and the blockade are lifted.