Trump Trolls, Calls Strait of Hormuz "New U.S. Territory." Here's Why Oil Investors Should Still Pay Attention

Oil prices are already factoring in a prolonged risk around the Strait of Hormuz as tensions between the U.S. and Iran threaten to keep the vital chokepoint effectively closed. Brent rose to $91.07 a barrel and West Texas Intermediate to $84.99, per Reuters. The U.S. Energy Information Administration estimates 20.9 million barrels per day passed through Hormuz in the first half of 2025—about 20% of global petroleum consumption and one-quarter of seaborne oil trade. The article addresses President Trump’s Truth Social claim calling Hormuz “NEW U.S. TERRITORY,” arguing it can’t be done via executive order and doesn’t change sovereignty under international law. Even so, military enforcement could escalate risks, with Iran warning the strait will stay closed until U.S. conditions are met.