Topline
President Donald Trump on Sunday said the Strait of Hormuz was “open as far as we’re concerned,” brushing off a declaration from the Iranian military insisting the waterway was closed once again.
Key Facts
“It’s open, and I don’t want to talk about it, because I want to honor the life of Lindsey Graham,” Trump told “Meet the Press” host Kristen Welker, later adding, “it’s open, we bombed the hell out of them last night, they’re very very evil and sick people.”
The U.S. and Iran exchanged another round of fire on Saturday, and U.S. Central Command claimed it struck 140 military targets including drone and missile sites hours after the Iranian Revolutionary Guard Corps hit a Cyprus-flagged container ship with a drone in the strait.
U.S. Central Command also claimed the Strait of Hormuz was “open to all vessels seeking to lawfully transit the international waterway,” contradicting a statement from Iran’s Persian Gulf Strait Authority—a government agency created in May to help control the waterway.
Later on Sunday, speaking to CNN’s State of the Union, Trump said the strait was “open as far as we’re concerned,” but refused to answer any further questions about the conflict.
What Has Trump Said About Iran?
Trump offered few details on the most recent operations in the Middle East during Sunday morning interviews, which focused on the sudden death of Sen. Lindsey Graham, R-S.C.Speaking to “Meet the Press,” Trump claimed Iran “agreed to a deal yesterday, a perfect deal for us, no nuclear, no this, no that, no nothing, they gave up everything. And then after that, they left the room, and then within an hour they launched a drone at a ship.” He told a similar story to CNN, telling host Jake Tapper “we hit them very hard last night, we had a deal with them yesterday they were giving up everything, then all of a sudden two hours after that they hit a ship with a drone. And I said, ‘these people, there’s something wrong with them.’”
Key Background
Last week, Trump declared the ceasefire between Iran and the United States signed in June was “over,” although he claimed peace talks with Iranian negotiators would continue. The announcement still sent shockwaves across international markets. Iran effectively shut down the Strait of Hormuz during the war that began in February, sending oil prices skyrocketing. The U.S. responded with a blockade of Iranian ships.
WHAT TO WATCH FOR
Oil futures contracts begin trading for the week at 6 p.m. EDT on Sunday evening, which could provide a clear view of investors’ interpretation of the situation, given how critical the strait is to global oil markets. West Texas Intermediate crude was trading around $71.50 when markets closed Friday, while global benchmark Brent Crude was trading around $76. A spike could indicate investors are concerned about whether traffic will be able to transit through the strait, while a drop or little movement in price would likely indicate investors trust Trump’s assurances that the strait remains open.
