Trump Threatens to Seize Hormuz
US President Donald Trump issued another strong statement regarding tensions in the Strait of Hormuz. In an interview with Fox News on Monday (July 13), Trump said that the US might seize control of the Strait of Hormuz if the security situation in the strategic shipping lane continues to deteriorate.
Trump also said that the United States should be reimbursed for its efforts to maintain and control the waterway. This statement comes amid escalating tensions between the US and Iran, as both sides trade accusations regarding shipping security in the Gulf region.
Furthermore, Trump claimed that the United States already has a deal with Iran. However, he accused Tehran of violating the agreement and called Iran a "bad group."
Trump's statement has the potential to increase uncertainty in global markets. If the US does indeed increase control over the Strait of Hormuz, oil prices could be boosted again, as the waterway is one of the world's main energy shipping routes.
As a result, oil prices could potentially remain high, the US dollar could gain support as a safe-haven asset, while gold and risk assets are likely to fluctuate. The market will now be watching to see whether Trump's statement is merely political pressure or a signal of a larger military move. (arl)
Source: Newsmaker.id