President Donald Trump posted on Truth Social that the Strait of Hormuz is open and that no talks with Iran are scheduled, as Brent crude surged to $126 a barrel. The statement comes after the 60‑day memorandum of understanding expired on Aug 17, leaving the Gulf dispute unresolved and pressuring markets for further oil price moves.
The expired MOU had set a 60‑day window for a broader nuclear and sanctions deal, which both sides failed to honor. Tehran maintains the strait remains shut until Washington lifts its blockade, while the U.S. threatened to bomb Oman if it interfered. UK maritime data showed only single‑digit vessel transits on Aug 17 and a ship was struck by an unknown projectile, injuring crew.
The conflicting narratives have already rattled markets: Brent’s climb to $126 lifted global oil‑price benchmarks, equity indices slipped, and sovereign‑bond yields in major economies rose to multi‑decade highs as investors price in prolonged supply risk. The uncertainty over Hormuz’s status keeps oil‑sensitive sectors on edge and sustains pressure on inflation‑linked policy decisions.
Trump asserts U.S. control of the waterway and its openness, whereas Iranian officials claim the strait remains closed and that U.S. threats have violated the original agreement. This divergence underscores the lack of a shared factual baseline and leaves the diplomatic path forward ambiguous.