FINWIRES · TerminalLIVE
FINWIRES

Trump Says Strait of Hormuz Must Remain Open, Signals Military Action if Iran Talks Collapse

By

US President Donald Trump said the Strait of Hormuz must be opened for everyone, and that Iran or any other country cannot be allowed full control over the Strait, warning of further military action if negotiations fail.

Trump made the remarks at a Cabinet meeting with US officials held on Wednesday.

"The Strait is going to be open to everybody. It's international orders, nobody's going to control it," Trump said when asked whether he would accept a short-term arrangement allowing Iran and Oman to control the passage.

He added that the US will continue watching over it. "We're going to watch over it, we'll watch over it, but nobody's going to control it. That's part of the negotiation that we have. They would like to control it," he said.

Trump also issued a direct warning over any attempt to restrict access through the strait, adding, "... Oman will behave just like everybody else, and we'll have to blow them up."

US-Iran peace negotiations are currently still ongoing and remain unresolved.

However, Trump said Iran is still very keen on coming to a peace deal. "Iran is very much intent; they want very much to make a deal. So far, they haven't gotten there, not, we're not satisfied with it, but that we will be," Trump said.

He said that it will be "either that or we'll have to just finish the job."

Secretary of State Marco Rubio echoed the administration's position, saying diplomacy remained the preferred option but reiterated that Iran would not be allowed to obtain a nuclear weapon.

"I think there's been some progress and some interest, and we'll see over the next few hours and days whether progress could be made," Rubio said.

Defense Secretary Pete Hegseth said the US remained prepared to take military action if negotiations failed.

"So, whether it is through the efforts of your [US] negotiators that they ensure that they [Iran] never have a nuclear weapon, or we have to go back to the War Department to finish the job that way, we're prepared to do that...," Hegseth said.

He added that the administration was targeting Iranian oil shipments globally, with many being seized.

Trump also rejected the possibility of sanctions relief for Tehran.

"No, we're not talking about any easing of sanctions or giving money. No sanctions, no money, no nothing," he said when asked whether the US would allow Iran to return oil to global markets.

"We have control of the money that they claim is theirs. We'll keep control of that money when they behave properly and when they do what's right, we'll let them have their money, but right now we're not doing that," Trump added.

The president said energy markets would stabilize despite tensions in the Gulf and predicted gasoline prices would decline "by a lot."

"It'll come, it'll come down to where it was before we had it," Trump said of fuel prices.

He also said the US and its allies were managing shipping traffic through the Strait of Hormuz, describing that there were many vessels in the Strait "wanting to get out."

"At the right time, we'll release them," he said.

Trump further linked any future agreement with Iran to a broader regional diplomatic push involving Arab states and the Abraham Accords.

"... we'd like to have them join the Abraham Accords. It'll be historic if they do it," he said, referring to Saudi Arabia, Qatar, UAE and other Gulf countries.

"I'm not sure we should make the deal if they don't sign," Trump added.

Related Articles

Oil & Energy

US Oil Update: Futures Mixed as Traders Weigh Iran Retaliation Risks

Crude oil prices traded mixed in after-hours trading on Tuesday after Iran vowed retaliation for fresh US strikes on its territory, keeping investors on edge over supply disruptions via the Strait of Hormuz even as diplomatic efforts to ease tensions continue.Front-month West Texas Intermediate crude futures slipped 3.14% to $93.57 per barrel, while Brent futures jumped 3.29% to $99.30/bbl.Liquidity Energy strategists said volatility is expected to remain elevated as traders monitor military developments, shipping flows, and diplomatic negotiations across the region.On Tuesday, Iran's Islamic Revolutionary Guard vowed to retaliate against "violations of the ceasefire" after it identified and engaged US drones and an F-35 jet fighter that entered the country's airspace.US forces "conducted self-defense strikes in southern Iran" on Tuesday, targeting vessels allegedly trying to deploy mines, as well as missile launch locations. The US Central Command said the actions were intended "to protect our troops from threats posed by Iranian forces."Saxo Bank strategists said crude prices rebounded after renewed US military activity in southern Iran and the Strait of Hormuz partially reversed Monday's sharp decline.Iran's Foreign Ministry condemned the US attacks as a violation of a ceasefire that's been in place since early April, while Supreme Leader Mojtaba Khamenei said that the "nations and lands of the region will no longer be a shield for American bases.""Without any doubt, the Islamic Republic of Iran will leave no act of aggression unanswered and will show not the slightest hesitation in defending the sovereignty and territorial integrity of Iran," the Foreign Ministry said in a statement.On the supply front, the Hormuz, the strategic waterway through which 20% of the world's oil and liquefied natural gas flows during peacetime, remains effectively closed amid a double blockade by the US and Iran.The US military has redirected 108 Iran-linked commercial vessels and disabled four others since imposing the blockade on April 13, US Centcom said on Tuesday.Iran's Islamic Revolution Guards said on Tuesday that 25 commercial vessels, including oil tankers and container ships, safely transited the Hormuz over the past 24 hours.

Oil & Energy

Update: Market Chatter: US Navy Supports Tanker Movements Through Strait of Hormuz

(Updated to include the US Central Command's response in the 7th and 8th paragraphs.)The US Navy quietly assisted vessels crossing the Strait of Hormuz, including a supertanker carrying 2 million barrels of crude, The Wall Street Journal reported Tuesday, citing US military officials.The officials said the Navy guided a Greek supertanker through waters near Oman after the vessel remained stranded in the Gulf since early March.The tanker is now sailing toward India to deliver its crude cargo, according to the report.Iranian attacks on vessels and Saudi restrictions on US base and airspace access forced the US to halt "Project Freedom," which it launched earlier this month to support traffic through the Strait of Hormuz.US officials said the Navy plans to assist about 12 vessels, including supertankers and container ships, through the waterway over the coming days, according to the report.A US Central Command spokesman reportedly told the WSJ that the military was not restarting Project Freedom and described reports of the initiative's resumption as inaccurate.US Centcom responded to' request for comment, dismissing all media reports that the US Navy had restarted escorting or assisting commercial vessels during transits through the Strait of Hormuz."Project Freedom has not resumed, and US forces are not currently escorting commercial vessels through the Strait of Hormuz," Centcom said in a post on X.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Oil & Energy

Oil Seen Swinging on US-Iran Deal Hopes, Structural Tightness Persists, Macquarie Says

Global oil markets could face a sharp, short-lived sell-off followed by a gradual rebalancing if a US-Iran agreement materializes, Macquarie strategists said in a note on Tuesday, adding that logistical constraints and stock dynamics may hamper a clean resolution of recent supply shocks.Though details of the possible deal remain limited, Macquarie analysts said reports suggest a 60-day extension of the ceasefire, reciprocal measures to reopen the Strait of Hormuz, and subsequent negotiations over nuclear issues.While markets have begun to price in easing geopolitical risk, analysts said past episodes suggest investors may discount political announcements in the absence of formal Iranian confirmation.Macquarie, in a base-case scenario, sees oil falling to about $20 per barrel within a week if markets accept the deal as credible, followed by a two-week consolidation phase.The bank said a subsequent repricing, driven by logistical and financial constraints, could emerge as vessel flows and storage dynamics adjust.However, Macquarie expects this would ultimately lead to an overshoot on the downside as supply returns faster than demand rebalances, before prices stabilize within a fair-value range of $65/bbl to 70/bbl.Macquarie, in its more cautious scenario, assumes a slower grind lower, with a $10 decline rather than $20, as incremental positive headlines accumulate without a fully signed agreement. The analysts said in that case, markets could retain a $5-$10 geopolitical premium until a clearer resolution.The bank said the key transmission mechanism for any de-escalation would be physical flows rather than headlines.It estimates that clearing Gulf shipping backlogs and normalizing tanker routes could take two to four weeks, followed by another two to four weeks for flows to approach full capacity, contingent on trust in safe passage through the Strait.Restarting energy infrastructure across the Arabian Gulf would mark key milestones, with Saudi Arabia expected to restore output quickly, while scrutiny is likely to focus on recovery timelines in Kuwait and Iraq.Logistically complex assets, including LNG and refining operations, could provide key signals of normalization.However, despite disruption risks, Macquarie said there is a significant buffer in global oil inventories and floating storage, which has helped cushion markets during recent supply shocks.The bank forecasts that 150-200 million barrels of crude are currently floating in the Arab Gulf, alongside about 6.5 million barrels of refined products. Of this, about 30% is Saudi-origin and 25% Iranian, with around 60 very large crude carriers and 40 Aframax-class vessels involved.Floating crude stocks in Asia are estimated at 50 million barrels, with a high share of sanctioned vessels, while China has seen a 2.8 million-barrel-per-day reduction in refining runs, partly linked to the conflict. Japan is reported to retain comfortable strategic stockpiles exceeding 90 days of cover.Macquarie said global oil balances remain supported by a combination of pre-existing surplus, strategic petroleum reserve releases, pipeline flexibility, and demand destruction. While Strategic Petroleum Reserve support is expected to continue into July and August, the bank said flows are likely to taper from June.Shock absorbers remain available for at least three months and potentially into the autumn, Macquarie said, adding that these buffers could prevent immediate upside price spikes but also set the stage for delayed volatility once inventories normalize.