Trump threatens to make Strait of Hormuz a U.S. territory — but the law says otherwise

President Donald Trump’s declaration that he will soon declare the Strait of Hormuz a U.S. territory has no precedent in modern international law, faces immediate rejection from Tehran, and comes as global energy markets are already reeling from a near-total blockade of the waterway.

Here is a clear breakdown of what Trump said, the legal reality, Iran’s response, the collapsed ceasefire, and the impact on oil prices — all based on reporting through August 14, 2026.

Trump’s "U.S. territory" declaration

Speaking at a rally in Garden City, New York, on August 14, President Trump said: "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." He added that the U.S. has a blockade in place and that "no ships get through unless we want them to."

The remark followed a series of Truth Social posts in which Trump claimed the U.S. has "total control" over the strait and wrote "I THINK WE WILL KEEP IT." He also told Fox News the same day that the U.S. is "in firm control" of the waterway .

Legal status: An international strait, not U.S. territory

The Strait of Hormuz is an international waterway governed by the United Nations Convention on the Law of the Sea (UNCLOS), where transit passage must not be impeded . At its narrowest point it is less than 30 miles wide — 21 nautical miles at the closest approach — and its waters fall within the territorial seas of Iran and Oman, both of which claim a 12-nautical-mile territorial sea .

Under international law, coastal states retain sovereignty over their territorial sea, but that sovereignty is subject to the right of transit passage for all ships, including warships . This right of transit passage is non-suspendable .

A critical complication: neither the United States nor Iran is a party to UNCLOS . Iran has signed but not ratified the treaty, and the U.S. has signed but never ratified it either . Legal scholars note that this means Iran cannot be held to UNCLOS transit-passage standards as treaty law, though some argue the regime reflects customary international law .

A unilateral U.S. declaration of sovereignty over the strait would have no basis in international law and would almost certainly be rejected by the international community, including the UN . The UN’s International Maritime Organization (IMO) has already urged member states not to recognize Iranian claims of sovereignty over the strait , and similar logic would apply to a U.S. claim.

Iran’s counterclaim: "Under Iran's control and management"

Iran has flatly rejected Trump’s assertion. On August 13, the newly appointed head of Iran’s Basij paramilitary unit, Hossein Taeb, declared that the strait is "under Iran's control and management" and said it will not reopen unless the U.S. accepts Iran’s demands and changes its behavior .

Iran also told the UN’s shipping agency in July that "parts of the Strait of Hormuz fall within the territorial waters of the Islamic Republic of Iran" and that it has authority over those portions . Tehran has argued that under the international law of the sea, a coastal state exercises sovereignty over its territorial sea .

The competing claims create a standoff where both sides accuse each other of violating international norms, and neither has a clear legal upper hand.

Ceasefire collapse: From Islamabad to renewed hostilities

A 14-point Islamabad Memorandum of Understanding was signed in June 2026, brokered by Pakistan, declaring an end to hostilities and a reopening of the strait . The deal was intended to provide a 60-day window for negotiations on a permanent agreement .

However, the deal frayed within weeks. On July 8, Trump declared the interim accord "over" . By mid-July, renewed U.S.-Iranian hostilities had eroded the ceasefire, with both sides accusing each other of violations . The U.S. conducted new waves of strikes, and Iran responded with attacks on commercial vessels .

As of August 12, a senior Iranian source told Reuters that there have been no talks on extending the 60-day ceasefire and that Iran demands Washington return to the original interim pact .

Impact on global oil supply and shipping

The Strait of Hormuz has been largely blocked by Iran since February 28, 2026, when the U.S. and Israel launched their air campaign against Iran . The number of vessels transiting the waterway fell to a one-week low of eight tracked ships in mid-August .

The International Energy Agency has warned that global oil stockpiles are "diminishing at a rapid clip" . Oil and natural gas prices have surged significantly as a result of the blockade . Traffic remains "minuscule" despite Trump’s insistence that the strait is open .

Trump on gas prices: "Pay a little more at the pump"

On August 14, Trump urged Americans to accept "slightly higher gasoline prices" as the necessary cost of preventing Iran from obtaining a nuclear weapon . He told the crowd: "To pay a little more at the pump, just remember that you're doing it to keep Iran from getting a nuclear bomb."

This is consistent with a pattern throughout the conflict. Since the war began in late February, Trump has repeatedly downplayed concerns about rising fuel costs:

• In March 2026, he said he had "no concern" about rising gas prices .
• In April, he acknowledged that prices "could remain high through November" .
• In June, he said he "loved" inflation because prices would fall after the war ends .

The average U.S. regular gasoline price topped $4 per gallon in April 2026 and has remained elevated since .