As it happened: FTSE 100 drops as oil prices rise after Trump makes Hormuz threat
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Oil prices have edged back up to more than $89 per barrel after the war of words between the US and Iran over the Strait of Hormuz continued over the weekend.
Donald Trump has threatened to seize the narrow waterway and make it a US territory, marking a major escalation of his rhetoric regarding who controls the strait.
He said he would make the declaration “pretty soon,” following weeks of stalemate over the future of the Strait as it approaches the six months mark for when the US and Iran first broke out into war on 28 February.
“After we finish defeating Iran, which is being very badly defeated, pretty soon I’ll be declaring the Hormuz strait a territory of the United States,” Trump said.
“Essentially, that’s what it is. We have the blockade. No ships get through unless we want them to.”
But Iran fired back with major general Amir Hatami referring to “joking about such remarks” as a “major mistake”. He also said the nation had “defenders who will break your legs”.
Tehran’s deputy foreign minister, Kazem Gharibabadi also posted on X: “This strait will be opened and closed only under Iran’s command, and so long as you do not accept the reality of defeat and stop indulging in fantasies, Iran will continue to enforce the blockade.”
Just two vessels passed through the strait on Friday, with no crude oil shipments visible, according to analysis from ship-tracking firm Kpler. It marks a major blow to the global oil market, with around 20 per cent of global supply flowing through the strait before the conflict and over 130 ships transiting the passage.
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