Oil prices are holding steady at around $88 per barrel as the confrontation between the United States and Iran over the Strait of Hormuz intensifies.
Donald Trump has threatened to declare the narrow and strategically critical waterway a US territory, marking a significant escalation in his rhetoric toward Iran.
The threat comes as the conflict between the two nations approaches the six-month mark, having first broken out on 28 February.
Trump said the declaration would come “pretty soon,” suggesting the move is imminent rather than a distant possibility.
“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.
He added: “Essentially, that’s what it is. We have the blockade. No ships get through unless we want them to.”
Iran responded forcefully, with major general Amir Hatami warning that joking about such remarks was a “major mistake” and that the nation had “defenders who will break your legs.”
Tehran’s deputy foreign minister, Kazem Gharibabadi, also took to X to deliver a pointed rebuttal to Trump’s territorial ambitions.
Gharibabadi posted: “This strait will be opened and closed only under Iran’s command, and so long as you do not accept the reality of defeat and stop indulging in fantasies, Iran will continue to enforce the blockade.”
The practical consequences for global energy markets are becoming increasingly stark, with ship-tracking firm Kpler reporting just two vessels passing through the strait on Friday, with no crude oil shipments visible.
Before the conflict began, the strait handled around 20 per cent of the global oil supply, with over 130 ships transiting the passage regularly.
The near-total stoppage represents a severe disruption to international energy flows, adding significant upward pressure on oil prices worldwide.
The FTSE 100 is expected to rise at the open, with markets weighing the geopolitical risks against broader economic conditions.
Traders and analysts will be watching closely for any further developments in the US-Iran standoff, which shows little sign of de-escalation in the near term.