FINWIRES · TerminalLIVE
FINWIRES

Trump Says US Seeks to Open Strait of Hormuz, Warns of Stronger Action

By

President Donald Trump said Wednesday that the US sought to open the vital Strait of Hormuz "immediately," warning of stronger action if diplomacy with Iran fails amid ongoing negotiations.

Trump made the remarks during a press gaggle ahead of a commencement address to the United States Coast Guard Academy.

"We have to open the strait," Trump said, adding that any agreement would require the waterway to "open immediately."

"So we're going to give this one shot. I'm in no hurry...," Trump said.

He also said that unrest in Iran has intensified as citizens grow frustrated with economic conditions. "There's a lot of anger now in Iran, because people are living so badly," Trump said.

On the current status of Iran, Trump said, "Final stages of Iran. We'll see what happens. We'll either have a deal or we're going to do some things that are a little bit nasty, but hopefully that won't happen."

During the commencement address, Trump reiterated that Iran would not be allowed a nuclear weapon.

"We will not let Iran have a nuclear weapon," Trump said, adding Tehran must either "sign a document" or face stronger US action.

Trump said Coast Guard tactical teams two months ago helped seize an oil tanker that was allegedly used to transport over a million barrels of oil into Iran.

"This is the third sanctioned Iranian vessel the Coast Guard has helped capture since we began the fighting, the real fighting with Iran, and many more to come," Trump said during the commencement address.

On Venezuela, Trump said, "We have millions of barrels of oil coming in to Houston and parts of Texas and Louisiana and Alaska," calling the new arrangement "amazing."

Oil prices fell sharply in midday trading on Wednesday, with Brent futures declining 5.94% to $104.67 per barrel and West Texas Intermediate sliding 5.99% to $97.91/bbl.

Related Articles

Oil & Energy

US Oil Update: Crude Settle Lower as Vance Signals Progress in Iran Talks

Crude oil futures slipped in after-hours trading on Tuesday after Vice President JD Vance indicated that the US and Iran were making progress in peace talks, easing concerns over potential supply disruptions from the Middle East.Front-month West Texas Intermediate crude futures eased by 0.34% to $104.04 per barrel, while Brent futures were down 0.91% to $111.08/bbl.On Tuesday, US Vice President Vance reportedly said that the US and Iran have made significant progress in their talks and that neither side wants to see a resumption of the military campaign."We think that we've made a lot of progress. We think the Iranians want to make a deal," Vance reportedly said at a White House briefing."The uncertainty surrounding talks, sanctions policy, and the duration of supply disruptions continues to keep energy markets volatile despite the temporary easing in geopolitical tensions," said Soojin Kim, research analyst at MUFG.On Tuesday, President Trump said he was "an hour away" from deciding whether to attack Iran before he was convinced to postpone the strike for a few days.Trump's remarks come a day after he claimed in a social media post on Monday that the US was delaying a previously unannounced strike planned for Tuesday because several Middle Eastern leaders asked him to "hold off" in light of ongoing discussions with Iran."One might think the oil market would become increasingly numb to these headlines. However, the scale of supply disruptions is significant and growing more concerning each day that oil flows remain halted," ING strategists said in a note on Tuesday.However, Iran's deputy foreign minister for legal and international affairs Kazem Gharibabadi reportedly rejected any consideration for surrender, saying Tehran is united and ready to confront any military aggression.The US "says it has 'temporarily' stopped the attacks on Iran to give negotiations a chance, but at the same time speaks of readiness for a massive offensive at any moment," Gharibabadi reportedly said, adding that Trump's remarks mean calling "threat" a "peace opportunity."The ongoing Middle East conflict has effectively closed the Strait of Hormuz, a critical waterway that handles about 20% of global oil and liquefied natural gas supplies, creating the world's largest oil supply disruption, according to the International Energy Agency.Iran unveiled a new body, the Persian Gulf Strait Affairs Authority, on Monday to oversee activities related to Hormuz. The agency said it would issue guidance to vessels transiting the waterway, including emails outlining passage rules and regulations.Saxo Bank strategist said traffic via the Strait remains only a fraction of pre-war levels, despite the waterway accounting for about one-fifth of global oil supply.On Tuesday, the US sanctioned over 50 entities, including oil and gas tankers as well as an Iranian foreign currency exchange, in its continued bid to get Tehran to agree to a deal and reopen the Hormuz.

Oil & Energy

US Oil Update: Crude Drops as Trump Halts Iran Strike, Easing Supply Fears

Crude oil futures retreated in midday trading on Tuesday after President Trump suspended a planned military strike on Iran to provide a window for peace talks, a decision that eased immediate supply disruption in the Middle East.Front-month West Texas Intermediate crude futures slipped by 0.04% to $108.62 per barrel, while Brent futures were down 1.10% to $110.84/bbl."Oil prices fell after President Trump said he had postponed a planned US military strike on Iran following appeals from Saudi Arabia, Qatar, and the UAE, raising hopes for renewed negotiations," said Soojin Kim, research analyst at MUFG.On Tuesday, Trump said he was "an hour away" from deciding whether to attack Iran before he was convinced to postpone the strike for a few days.His remarks come a day after he claimed in a social media post on Monday that the US was delaying a previously unannounced strike planned for Tuesday because several Middle Eastern leaders asked him to "hold off" in light of ongoing discussions with Iran."One might think the oil market would become increasingly numb to these headlines. However, the scale of supply disruptions is significant and growing more concerning each day that oil flows remain halted," ING strategists said.However, Iran's deputy foreign minister for legal and international affairs rejected any consideration for surrender, saying Tehran is united and ready to confront any military aggression."The United States says it has 'temporarily' stopped the attacks on Iran to give negotiations a chance, but at the same time speaks of readiness for a massive offensive at any moment," Kazem Gharibabadi said, adding that Trump's remarks mean calling "threat" a "peace opportunity."The ongoing Middle East conflict has effectively closed the Strait of Hormuz, a critical waterway that handles about 20% of global oil and liquefied natural gas supplies, creating the world's largest oil supply disruption, according to the International Energy Agency.The US Navy has redirected 88 Iran-linked commercial vessels and disabled four others since imposing the blockade on April 13, the US Central Command said in a social media post on Tuesday.Iran unveiled a new body, the Persian Gulf Strait Affairs Authority, on Monday to oversee activities related to Hormuz. The agency said it would issue guidance to vessels transiting the waterway, including emails outlining passage rules and regulations.Saxo Bank strategist said traffic via the Strait remains only a fraction of pre-war levels, despite the waterway accounting for about one-fifth of global oil supply.On Tuesday, the US sanctioned over 50 entities, including oil and gas tankers as well as an Iranian foreign currency exchange, in its continued bid to get Tehran to agree to a deal and reopen the Hormuz.

Oil & Energy

Trump Says Gulf Allies Push Iran Talks as US Seeks Nuclear Deal

US President Donald Trump on Tuesday said Middle Eastern allies are pushing for continued negotiations with Iran as the US seeks to block Tehran's nuclear ambitions.Trump made the remarks while interacting with reporters during a visit to the ballroom construction site."We have to make sure that Iran doesn't get a nuclear weapon," Trump said, adding that the US may deliver "another big hit" if negotiations collapse.Trump said Gulf countries recently contacted the White House and told him they had "made a lot of progress" in ongoing talks with Tehran.He added that Saudi Arabia, Qatar, UAE, Kuwait and Bahrain are helping negotiate with Iran. "We're all working together," Trump said, adding that they were working as a team along with Israel.Trump said recent strikes severely weakened Iran's military, adding "their missiles are 82% gone," while much of the country's naval and air force capacity has also been destroyed."One way or the other, whether it's military or an agreement," Trump said, noting that the issue will be resolved soon."President Xi has promised me that he's not sending any weapons to Iran," Trump said, while adding that China wants the Strait of Hormuz to remain open because it receives 40% of its oil through the route.Trump said Iran has treated the Strait of Hormuz as a geopolitical weapon for decades, adding, "I want it open, and we'll get it open."The US President said gasoline prices could rise temporarily during the conflict, although the administration remains focused on preventing Iran from obtaining nuclear weapons.Growing oil shipments from Texas, Louisiana and Alaska should help stabilize energy supplies, adding "there is so much oil out there," Trump said."I thought the market would go down 25% and I was okay with that," Trump said, adding that preventing a "nuclear holocaust" outweighed market concerns.