Trump: Strait of Hormuz traffic will resolve itself

Summary

Following a series of escalating threats against Iran throughout March, including vows of “unprecedented military force” and “fierce bombing” to reopen the Strait of Hormuz marketscreener, U.S. President Trump’s latest comment suggests a significant de-escalation. He stated that regarding passage through the strait, “at some point, it will open by itself.”Zhitong This follows his earlier attempts to pressure NATO allies into a naval coalition, an effort that reportedly received a sparse response , and threats to destroy a major gas field if Iran attacked Qatar rttnews. His aggressive rhetoric had previously caused market anxiety Market Pulse+ 2.

Impact Analysis

So Trump’s tone on Hormuz has completely flipped. Just last week he was threatening “fierce bombing” and promising to personally reopen the strait . Now he’s saying it will “open by itself.”Zhitong This is a classic walk-back. It tells me his attempt to strong-arm allies into a coalition failed, as reports suggested . He’s now rhetorically de-escalating to save face and avoid being boxed in by his own threats.

The market priced in a significant conflict premium based on his earlier, aggressive posts Market Pulse. This new, passive language basically pulls the rug out from under that premium. The immediate risk of a major, US-led military action has just dropped significantly. Bottom line, this is a clear signal that the geopolitical temperature is cooling for now. The tactical trade is to short the war premium in oil. His words put it in, and his words are now taking it out.