US Readies New Iran Penalties as Trump Vows to Declare Hormuz US Territory

President Donald Trump has made statements about the Strait of Hormuz, vowing to declare the critical waterway a U.S. territory, though the exact timeline and conditions for such a move remain unclear. The remarks, made during a rally in New York, come as the U.S. intensifies economic pressure on Iran and grapples with the prolonged conflict in the Middle East.

“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 during a speech at a police academy on Long Island. The statement, reported by multiple outlets, reflects a notable shift in rhetoric as the war enters its sixth month. The Strait, through which about a fifth of global oil supplies pass, has been a flashpoint since U.S. and Israeli forces launched operations against Iran in February. Both sides claim control, but the U.S. has imposed a naval blockade, restricting Iranian shipping and disrupting regional trade.

Trump’s comments align with broader U.S. efforts to isolate Iran economically. Treasury Secretary Scott Bessent signaled upcoming measures “never seen before” in a Newsmax interview, though specifics remain unclear. The U.S. has already imposed over 2,200 sanctions on Iran since 2018, targeting its oil and petrochemical sectors. However, analysts note that repeated sanctions have failed to force Tehran to abandon its nuclear program or relinquish control of the Strait. “If 47 years of sanctions haven’t broken Tehran’s will, more of the same is unlikely to produce any changes,” a Bloomberg Economics report stated.

Iran has rejected U.S. demands, insisting it maintains authority over the waterway. The Islamic Republic has demanded tolls for passage and accused the U.S. of obstructing trade. “No activity in the Strait of Hormuz escapes the watch of the IRGC Navy’s fighters,” said Rear Admiral Ali Azmaei, head of Iran’s Revolutionary Guard Corps navy. Meanwhile, U.S. officials have floated the idea of imposing tolls on Iranian vessels, a move Tehran has condemned as an attempt to “colonize” the region.

The conflict’s economic toll is evident in rising fuel prices. U.S. gasoline averaged $4.07 per gallon as of late August, while Brent crude approached $90 per barrel. Trump defended the costs, telling supporters, “You’re doing it so that a very evil country cannot have a nuclear weapon.” However, the war has also strained U.S. military resources. The USS Abraham Lincoln, deployed for nearly nine months, has faced scrutiny over conditions aboard, with reports of mental health crises and supply shortages. The Navy denied claims of a “mental health crisis,” citing no increase in suicidal ideation, though it acknowledged a sailor had gone overboard in August.

Trump downplayed concerns about the Lincoln’s deployment, calling it “not nearly long enough.” He also dismissed calls for accountability, stating, “No, they’re not” when asked if families were worried about the ship’s extended mission. The carrier is set to be replaced by the USS George Washington, part of a broader strategy to sustain operations in the region. Defense Secretary Pete Hegseth asserted the U.S. could maintain the blockade “indefinitely,” though the long-term sustainability of such efforts remains uncertain.

Iran has sought to counter U.S. pressure by bolstering its military presence abroad. The country has reorganized its forces and engaged in diplomatic talks with Oman to establish alternative shipping routes, though the U.S. is not involved in those discussions. Meanwhile, Tehran has accused the U.S. of destabilizing Yemen, a claim it denies. Iran’s foreign ministry spokesperson, Esmail Baghaei, stated the Strait would “in no way return to the status it was before February 28,” referencing the war’s start date.

The situation has drawn international attention, with Gulf states and global markets closely monitoring developments. The UAE condemned recent attacks on its oil tankers in the Strait, blaming Iran, while Saudi Arabia called for regional stability. Analysts warn that the conflict’s protraction risks further economic and geopolitical fallout. “The U.S. has already added significant pressure, but without a clear path to de-escalation, the risk of miscalculation remains high,” said Jeremy Paner, a partner at Hughes Hubbard & Reed.

As Trump prepares to face midterm elections, the war’s impact on energy prices and military commitments could become a political flashpoint. Democrats have already begun framing the conflict as a threat to economic stability, while Trump’s allies emphasize his “tough on Iran” stance. The president’s latest remarks, however, have drawn skepticism from both domestic and international observers. “The Strait of Hormuz is an internationally navigable strait, not a U.S. territory,” said Kazem Gharibabadi, Iran’s deputy foreign minister, dismissing Trump’s claims as “a show of force.”

The coming weeks will test whether the U.S. can translate its military and economic pressure into a lasting resolution. For now, the Strait of Hormuz remains a symbol of a conflict that shows no signs of swift conclusion.