Key facts
- Donald Trump threatened to declare the Strait of Hormuz as US territory.
- Oil prices surged as the US-Iran ceasefire expired.
- Brent crude surpassed $91 per barrel.
- Trump stated he would not seek to extend the US-Iran ceasefire.
- Iran indicated an understanding had been reached regarding the transit route map.
Oil prices are marching higher after Donald Trump refused to extend the ceasefire between the US and Iran following its expiration on Monday. Brent crude – the international benchmark for oil prices – broke above $91 per barrel as tensions persisted over the Strait of Hormuz and a potential return to conflict. Speaking in the White House, Trump confirmed he would not seek to extend the 60-day memorandum of understanding between the two nations after it expired on Monday. The deal was originally touted as a key step on the road to peace. This followed Trump reiterating his ambition to make the Strait of Hormuz a US territory. Trump stated he would make the declaration "pretty soon," following weeks of stalemate in the conflict that began on February 28. He asserted that no ships would pass through the strait without US approval, describing it as a blockade. "After we finish defeating Iran, which is being very badly defeated, pretty soon I’ll be declaring the Hormuz a territory," he said. Iran’s foreign affairs spokesperson Esmail Baghaei said an “understanding has been reached regarding the map of the transit route”. Trump, however, has threatened to “bomb the s**t” out of Oman if it “gets in the way” regarding the US negotiations.