Trump's Strong Statement on the Strait of Hormuz: Open to All, U.S. Responsible for Oversight
U.S. President Trump stated regarding the passage through the strait that it will be open to everyone, not controlled by any one party, and that the U.S. will be responsible for oversight.
He also firmly pointed out that Oman must follow the rules like everyone else, or "we will have to blow them up."
These remarks further highlight the Trump administration's tough stance on freedom of navigation in the Strait of Hormuz.
Source: Public Information
ABAB AI Insight
Trump has previously taken a hardline stance on energy passage issues, and this time directly naming Oman continues his "America First" and maximum pressure diplomatic style, aiming to maintain actual control and deterrence over the key strait through public military threats.
In terms of capital pathways, Trump's statement increases market uncertainty regarding the Middle East situation, accelerating capital towards U.S. domestic energy production, military enterprises, and assets related to alternative routes, while also raising tanker insurance rates and safe-haven demand, motivated by hedging against potential disruptions in the Strait of Hormuz.
Similar to Trump's hardline policies during his first term regarding Iran and regional passages, as well as recent U.S. military actions against Iranian targets, the current U.S.-Iran and surrounding situation is in a tense phase of military deterrence and diplomatic maneuvering.
Essentially, this represents a transfer of pricing power: by reinforcing the narrative of control over the key strait through public military threats, the mechanism is to clarify the position of "U.S. oversight" which raises the risk premium for global energy transport, forcing capital to shift from supply chains reliant on a single strait to diversified energy security configurations, pushing global energy pricing power towards a U.S.-led stable supply network.
ABAB News · Cognitive Law
Key passages can never be left under someone else's control; the U.S. must "oversee". The tougher the diplomatic rhetoric, the quicker the market prices in the risks. Truly effective deterrence is treating "otherwise we will blow it up" as a credible option.