The long-simmering confrontation between the United States and Iran took a provocative turn this week when President Donald Trump posted a map of the Strait of Hormuz on his Truth Social platform, labeling it 'NEW US Territory' and declaring it 'open and operational.' The statement came just one day after a 60-day memorandum of understanding signed with Iran in June expired without a breakthrough.
Trump: 'No Negotiations' as Naval Blockade Continues
In his message, Trump said: 'There are no conversations or negotiations underway or scheduled with the Islamic Republic of Iran.' He added: 'The naval blockade remains in full force. The Strait of Hormuz is open and operational. All aquatic mines have been removed or detonated.' This contradicted his own claim from Monday, when he mentioned an unofficial communication channel with Iran's Revolutionary Guard – which Tehran promptly denied.
On Friday, at a rally in Long Island, Trump had already teased the move: 'After we finish defeating Iran, which is being defeated very badly, very soon I will declare the Strait of Hormuz US territory.'
Iran's Demands: Non-Negotiable
Iran's chief negotiator, Parliament Speaker Mohamad Baqer Qalibaf, was blunt: the strait will remain closed until Washington meets the conditions of the provisional agreement signed on June 17. Listed before parliament, these demands include:
- Lifting the naval blockade on Iranian ports.
- Removing oil sanctions.
- Unfreezing Tehran's assets.
- Ending all military threats and operations on all fronts.
Qalibaf also accused the US of trying to force more concessions and dismissed Trump's officials as not up to the task.
A Broken Deal and an Escalating Crisis
The memorandum of understanding signed on June 17 called for an 'immediate and permanent cessation of military operations on all fronts' and opened a 60-day window to negotiate a comprehensive agreement, including Iran's nuclear program. But the deal quickly fell apart over the dispute about control of the strait. Trump declared the agreement 'terminated' on July 7, and Iran followed suit by declaring it 'suspended' a week later. Since mid-July, the strait has been effectively closed, with maritime traffic down by 19.5%, according to data from analytics firm Kpler.
A senior Iranian official told Reuters on Monday that Tehran will now adopt a 'totally offensive' stance due to the diplomatic stalemate.
Threats to Oman and Qatari Mediation
In an attempt to increase pressure, Trump also threatened to bomb Oman, which shares geographical access to the strait with Iran. 'If Oman gets in the way, we will bomb them and destroy them,' he told Fox News, adding that Iran should 'raise the white flag and surrender.'
Oman, historically a neutral mediator, has been in talks with Iran over managing the waterway. Qatar, another mediation power, expressed hope that an Oman-Iran agreement could restart negotiations between Washington and Tehran. Qatari Foreign Ministry spokesman Majed Al Ansari said such an agreement would 'allow us to return to the framework of negotiations' and facilitate 'resuming US-Iran talks.'
Global Impact: Oil Prices Surge and Markets Shudder
The standoff is rattling global energy markets. Brent crude prices have climbed above USD 91 per barrel, the highest level since July, while WTI futures rose to USD 85. The Strait of Hormuz is a critical chokepoint: before the crisis, roughly one-fifth of the world's crude oil and a similar share of liquefied natural gas passed through its waters.
Financial markets are also feeling the heat: the yield on the 30-year US Treasury bond hit an intraday high of 5.33%, the highest in nearly two decades, while German 10-year bonds reached their highest level in 15 years.
In the region, the United Arab Emirates air defenses detected two ballistic missiles launched from Iran on Tuesday; one landed in its territorial waters. No casualties were reported, but the incident set off alarms across the Gulf.
A Conflict That Began in February
The war between the US and Iran started on February 28, when Washington and Israel launched a military campaign against the Islamic Republic. Since then, the Strait of Hormuz has become the main flashpoint, with Iran threatening to close it and the US imposing a naval blockade.
The international community watches with growing concern. Iran-backed Houthi rebels in Yemen attacked a Saudi Aramco refinery in Jizan on Tuesday, while a projectile of unknown origin struck a ship in the strait, killing one person on board.
With no diplomatic solution in sight and regional powers taking sides, the Hormuz crisis is shaping up to be one of the biggest geopolitical challenges of the year, with direct consequences for the global economy.