WASHINGTON — US President Donald Trump is escalating pressure on Iran on two fronts, warning of tougher economic measures against Tehran while making the extraordinary suggestion that the strategically vital Strait of Hormuz could soon become “territory of the United States.”
Trump’s comments on Friday came as commercial traffic through the narrow Gulf waterway slowed dramatically amid renewed attacks on ships and a deepening standoff between Washington and Tehran. The strait, one of the world’s most important energy corridors, has become a central battleground in a conflict now approaching six months.
Speaking at an event in Garden City, New York, Trump said that after the US succeeds against Iran, he could move to claim the Strait of Hormuz for Washington.
“Pretty soon I’ll be declaring the Hormuz Strait a territory of the United States,” Trump said, though his tone left unclear whether the statement represented an actual policy plan or political rhetoric. Reuters separately confirmed that Trump made the declaration during his August 14 remarks.
The statement marked another sharp escalation in Trump’s rhetoric over the waterway, after he declared earlier in the week that the United States had “total control” over the strait.
Iran immediately pushed back.
Deputy Foreign Minister Kazem Gharibabadi rejected Washington’s claim to authority over Hormuz, insisting that Tehran would determine whether the waterway remains open or closed. Iranian Foreign Minister Abbas Araqchi, meanwhile, said no decision had been made to restart negotiations with the United States despite continued contacts through mediators.
Washington turns up economic pressure
Trump also signaled that his administration intends to intensify financial pressure on Iran as diplomatic efforts remain stalled.
His warning follows months of US sanctions targeting Iranian oil, financial networks and entities Washington accuses of helping Tehran circumvent restrictions. The Treasury Department has continued expanding measures against networks linked to Iran, including actions targeting illicit oil and financial operations.
Trump has portrayed Iran’s deteriorating economic position as leverage for Washington, previously saying his options included allowing Tehran to continue weakening financially or striking it “really, really hard.”
But the economic consequences are increasingly being felt outside Iran as well.
Shipping through Hormuz has plunged amid attacks, threats and competing claims of control from Tehran and Washington. Reuters reported that traffic through the passage was far below normal levels, while the United Arab Emirates blamed Iran for attacks involving vessels operated by state-owned ADNOC.
Before the conflict, roughly one-fifth of global oil supplies passed through the Strait of Hormuz, making any sustained disruption a major threat to energy markets and the global economy.
Trump tells Americans: Higher gas prices are worth it
With the disruption pushing up fuel costs, Trump urged Americans to tolerate higher gasoline prices, arguing that the financial burden was a necessary price for preventing Iran from developing a nuclear weapon.
US gasoline prices have climbed to roughly $4.08 a gallon, according to Reuters, about 29 percent higher than a year earlier.
Trump defended his Iran strategy by portraying the campaign as a broader service to global security, saying he would not apologize for taking action against Tehran despite the impact on consumers.
The argument could become increasingly politically sensitive as the United States heads toward the November midterm elections, particularly after Trump campaigned heavily on lowering energy costs and keeping America out of prolonged Middle East conflicts.
The administration now faces the difficult task of convincing voters that higher fuel prices are justified by its Iran strategy while simultaneously trying to restore the flow of oil through Hormuz.
Hormuz becomes center of US-Iran showdown
The strategic waterway has emerged as perhaps the biggest bargaining chip in the confrontation.
Traffic has fallen sharply from prewar levels as Iran restricts passage and the US increases its military presence around the Gulf. Washington has threatened to sustain pressure on Tehran, while Iran maintains that normal shipping will not resume unless its demands are addressed.
The standoff follows the collapse of a June ceasefire arrangement that had temporarily reopened the strait and created a framework for a longer-term settlement. The White House had previously celebrated that agreement as a major breakthrough, saying it restored toll-free international shipping before tensions flared again.
With negotiations once again stalled, attacks on commercial vessels have added urgency to diplomatic efforts. Two UAE-operated tankers were attacked while passing through Hormuz this week, underscoring the risk that the maritime confrontation could intensify further.
For Trump, the latest threats signal that Washington is prepared to combine military pressure, economic punishment and increasingly provocative rhetoric in an effort to force Tehran back to the negotiating table.
For global markets, however, the most immediate question is far simpler: how long can the Strait of Hormuz remain severely disrupted before the economic shock spreads far beyond the Gulf?