President Donald Trump told a New York rally on Aug. 14 he will soon declare the Strait of Hormuz a U.S. territory, a waterway that moves roughly 20% of world oil and LNG. Iran’s deputy foreign minister rejected the claim, warning the strait will stay under Iranian control, heightening political and market tension ahead of U.S. midterm elections.
Trump’s declaration came as Iran has kept the strait effectively closed since late February, and attacks on United Arab Emirates’ ADNOC vessels were reported on Aug. 14 and 15. Deputy Foreign Minister Kazem Gharibabadi posted on X that the strait “has been Iranian, is Iranian, and will remain Iranian,” and only Iran can open or close it. The United States maintains its own blockade of Iranian ports.
The dispute has already pushed oil prices higher, creating pressure on American voters concerned about energy costs. Vice President J.D. Vance said keeping U.S. fuel prices low is a top priority, while Iran seeks to control the strait and levy tolls—an outcome the United States says it will oppose. The issue adds a political headache for Trump as the November midterms approach.
A White House official later characterized Trump’s statement as a joke, whereas Trump reiterated the claim to a cheering crowd, and Iran continues to assert exclusive control over the strait, highlighting a clear disagreement over the intent and seriousness of the U.S. position.