Trump vows to claim Strait of Hormuz as US territory, sending Brent crude above $89

Donald Trump used his X account to announce that, after what he called a decisive defeat of Iran, he will soon declare the Strait of Hormuz a United States territory. He added that the move would come "pretty soon I’ll be declaring the Hormuz strait a territory of the United States".

Market impact

Brent crude rose past $89 a barrel following the statement, and London’s FTSE 100 edged higher as shares linked to oil benefitted. The strait channels roughly 20 % of global oil supplies, so any disruption is likely to reverberate through fuel prices at the pump and the earnings of energy‑related equities on the FTSE.

Iranian response

Senior Iranian general Amir Hatami dismissed the US claim as a "major mistake" and warned that Iran’s forces would "break your legs" if challenged. Deputy foreign minister Kazem Gharibabadi wrote on X that the waterway will be opened or closed only at Iran’s command, and that Tehran will continue to enforce its blockade.

Shipping activity

Data from ship‑tracking firm Kpler showed only two vessels passed through the strait on Friday, with no crude cargoes among them. Normal traffic exceeds 130 ships per day, highlighting the risk of a supply shock if tensions persist.

Outlook for investors

Analysts expect the heightened rhetoric to keep oil prices volatile in the short term. Should Washington formalise its claim, shipping insurers may lift premiums and governments could pursue diplomatic channels to keep the passage open. For UK investors, the principal risk remains the duration of the dispute and its potential to drive sustained higher energy costs.