Key facts
- President Trump declared the Strait of Hormuz "American territory."
- Trump threatened "tremendous economic consequences" for countries doing business with Iran.
- Iran's Foreign Ministry spokesperson called planned U.S. sanctions an "assertion of extraterritorial sovereignty."
- Commercial shipping through the Strait of Hormuz has significantly decreased.
- U.S. Treasury Secretary Scott Bessent is set to announce new sanctions against Iran.
- Potential new sanctions options include targeting Chinese refiners and banks, a land blockade, and secondary tariffs.
- Iran has threatened military responses to U.S. sanctions.
U.S. President Donald Trump has declared the Strait of Hormuz "American territory" and vowed to impose unprecedented economic pressure on Iran, threatening "tremendous economic consequences" for countries that conduct business with Tehran. The announcement comes as Treasury Secretary Scott Bessent is expected to unveil new sanctions against Iran.
Iran's Foreign Ministry has condemned the planned U.S. sanctions as an "assertion of extraterritorial sovereignty" and threatened military responses. Commercial shipping volume through the vital waterway has reportedly decreased significantly.
Experts suggest several options for escalating economic pressure on Iran, including sanctions on Chinese independent refineries known as "teapots" and Chinese banks that process Iranian oil transactions. The U.S. could also continue targeting individuals and entities that help Iran evade sanctions, a strategy described as "whack-a-mole." Additionally, a land blockade involving Iran's neighbors has been floated, and Trump has previously threatened tariffs on countries trading with Iran, with potential new tariff powers included in recent Senate-passed legislation.
Trump's foreign policy agenda has been described as stalled heading into the midterm elections. Iran's Foreign Minister has called Trump's threats "doomed to failure."