US President Donald Trump has said he plans to declare the Strait of Hormuz a "territory" of the United States, a statement that adds a new layer of uncertainty to an already volatile geopolitical flashpoint and one that could have implications for global energy markets.
Speaking at an event in New York on Friday, Trump said the move would come after what he described as the defeat of Iran.
"After we finish defeating Iran, which is being very badly defeated, pretty soon I'll be declaring the Hormuz Strait a territory of the United States," Trump said.
The remarks come as control of the Strait of Hormuz has emerged as one of the biggest sticking points in negotiations between Washington and Tehran. The waterway, which previously handled about 20% of global oil supplies, has faced repeated disruptions since the conflict escalated earlier this year.
Hormuz At The Centre Of Oil Market Concerns
Iran restricted traffic through the strait after the conflict began, while the US has established its own blockade in the waterway. Earlier this week, US forces fired on a cargo vessel that Washington accused of attempting to reach Iranian ports.
Trump defended the US presence in Hormuz, calling it essential for global trade.
"What we're doing is a great service for the world. Not only for ourselves, for the world," he said. "The blockade is unstoppable. It's a wall of steel."
The comments are likely to complicate ongoing diplomatic efforts. Although the US and Iran signed a memorandum of understanding in June aimed at halting military operations, both sides later accused each other of violating its terms and fighting resumed.
One provision of the agreement required Iran to make its "best efforts" to ensure the safe passage of commercial vessels through the strait.
ALSO READ: 'Hormuz Cannot Be Seized By A Tweet': Iran Hits Back At Trump Over Ownership Claims
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
