Trump Says Iran Will Be Hit If Strait of Hormuz Remains Closed
Ninoda.com – Trump says Iran will be hit very hard if the Strait of Hormuz does not reopen soon, the US president warned as oil prices fell to a three-week low. Speaking to Fox News, Donald Trump indicated that a deal could be reached shortly, with Secretary of State Marco Rubio and Treasury Secretary Scott Bessent both reporting progress in talks. Brent crude dropped nearly 5% to under $80 a barrel on Tuesday, while West Texas Intermediate fell more than 5% to $76.
Oil Markets React to Diplomatic Progress
Markets continued to move lower on Wednesday, with Brent down about 0.7% in Asian trading. The volatile oil market has left motorists facing higher fuel prices after months of failed de-escalation attempts. "We're having very good discussions," Trump said during a California visit, insisting Iran wanted to end the conflict. US Central Command confirmed the southern route through the Strait remains open for commercial vessels.
Rubio told reporters at the State Department that progress had been made in discussions with Iran and Oman regarding ship movements. "There's been progress made in those talks, but not finality yet. We're hoping that will happen very shortly," he said. Bessent suggested a deal could be agreed as soon as Wednesday, noting there was "a chance we may have a deal today or tomorrow to open the strait and move towards a more normalised position in this conflict."
While US officials announced ongoing talks, no details emerged about a potential deal. Iran maintains it is not negotiating directly with the US and is instead working through Oman. A foreign ministry spokesman described talks on a new vessel mechanism as positive. Qatar, another key mediator, confirmed continued efforts but admitted no direct talks were currently planned.
The Strait of Hormuz has been central to US-Iran negotiations since the conflict began in late February. Before hostilities, the waterway handled about one-fifth of global daily oil and liquefied natural gas supplies. Iran halted most traffic through the strait, while the US imposed a naval blockade on Iranian ports. Another blockade affects Saudi Arabia's Red Sea ports, imposed by Yemen's Iran-backed Houthis since 20 July.
The alternative route has become increasingly dangerous, with several vessel attacks reported recently. On Tuesday, a projectile sank an Indian-flagged ship near Yemeni waters, though all 14 people aboard were rescued. Analysts believe the threat to oil-carrying ships in the Middle East is at its worst since the conflict began.
Fuel Prices Rise Globally Amid Uncertainty
"Investors are acutely aware of how many times we've already been at this point in the war and how fragile the process of securing lasting agreements can be," said Danni Hewson, head of financial analysis at AJ Bell. The disruption has pushed pump prices worldwide higher. In the UK, petrol prices reached levels seen at the conflict's start, with the average litre hitting £1.60 according to the RAC motoring group.
US gasoline prices average above $4 a gallon, while diesel reaches almost $5.40 a gallon, according to the AAA. Prices have surged past $120 during escalations and plunged when previous talks suggested breakthroughs. Major oil companies including BP, Shell, Chevron and Exxon Mobil have reported strong profits. However, Hewson noted that despite huge revenues, oil companies remain "at the mercy" of Trump's decisions.
FAQ: Strait of Hormuz Crisis
What is the Strait of Hormuz and why is it important?
The Strait of Hormuz is a critical waterway that handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February.
Who is mediating between the US and Iran?
Oman and Qatar are the primary mediators in negotiations, with Iran conducting talks through these intermediaries rather than directly with the US.
How have oil prices been affected?
Brent crude fell nearly 5% to under $80 a barrel, while West Texas Intermediate dropped more than 5% to $76, both reaching their lowest levels since 13 July.
What are the current fuel prices for consumers?
US gasoline averages above $4 a gallon with diesel near $5.40, while UK petrol has reached £1.60 per litre, matching levels from the conflict's start.
