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Iran Reclaims Control of Strait of Hormuz. Trump Still Optimistic About Peace Deal

Dow Jones07:56

Iran's military reclaimed control of the Strait of Hormuz on Saturday -- less than 24 hours after reopening it -- citing the U.S.'s refusal to lift its naval blockade. President Donald Trump responded with tough words, but also said he is still optimistic about a peace deal.

The move creates more uncertainty over the status of the strait, a key shipping route for oil as well as other crucial supplies such as helium and fertilizer.

A few hours after Iran retook the strait, the country's navy attacked two commercial vessels -- a tanker and a container ship, a British maritime organization reported.

The U.K. Maritime Trade Operations, which is administered by the British Royal Nacy, posted on X that two Islamic Revolutionary Guard gun boats had shot at the tanker and that "an unknown projectile" had hit the container ship. No one was hurt in either attack, but the projectile damaged some container.

TankersTracker.com, which tracks global oil shipments, posted on X that Iran's navy forced two Indian ships out of the strait and that "firing was involved." One was carrying 2 million barrels of Iraqi oil.

In Washington, Trump had strong words about Iran's about-face.

"They wanted to close up the strait again...as they have been doing for years," the president said at a White House event. "They can't blackmail us."

Trump told reporters that the U.S. and Iran were talking about a peace agreement and that he expected to know more by the end of the day.

"It's going, actually, along very well, and we'll see...," the president said. "We're talking to them, and you know, we're taking a tough stand."

The Supreme National Security Council, made up of Iran's highest officials, was considering a new U.S. proposal for peace, Iranian state television reported on Saturday, according to the Journal. State television cited a statement by the council.

Iran hasn't responded to the U.S., according to the state media outlet. Talks could resume as early as Monday in Pakistan, the Journal reported.

In its statement, the council also said Iran is determined to control the strait until a peace deal is reached.

Iran reopened the channel on Friday after closing it when the war started six weeks ago. Minutes after that move, Trump thanked Iran but said the naval blockade would stay in place until a peace deal is reached.

On word of the reopening, oil prices immediately fell 13%; they closed down 9%, below $90 a barrel for the first time since late March.

Oil futures begin trading again on Sunday. After Friday's reopening announcement, though, several oil market analysts said many shippers and insurers would be reluctant to pass through the strait because of the uncertainty.

Saturday's reclosing, announced by Islamic Revolutionary Guard Corps., came less than a day after Iran reopened the channel.

"It is announced that until the United States ensures full freedom of navigation for vessels traveling from Iran to other destinations and vice versa, the status of the Strait of Hormuz will remain heavily controlled and unchanged," the military said in a Facebook post.

Late Friday, in Phoenix for a political rally, Trump said the Navy's blockade of the waterway would stay in place until an agreement is struck. As of Saturday, U.S. forces have ordered 23 ships to turn around since the start of the blockade, U.S. Central Command posted on X.

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  • Tan Jame
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