Trump: "We don’t need Hormuz…no impact on the U.S."

JH Kim

Summary

U.S. President Donald Trump said, "We don’t need the Strait of Hormuz," adding that it would have no impact on the United States at all.
The report said the remarks, made amid continuing threats to block Hormuz by Iran, are seen as intended to underscore U.S. energy self-sufficiency.
The report said markets assess that because the Strait of Hormuz is a key artery for global crude supply, any actual closure would inevitably cause a major shock to international energy markets.

Forecast Trend Report by Period

U.S. President Donald Trump played down the importance of the Strait of Hormuz.

According to Walter Bloomberg on the 26th (local time), Trump said, "We don’t need the Strait of Hormuz," adding that it "has no impact on the United States at all."

The remarks come amid ongoing threats from Iran to block Hormuz, and are seen as an attempt to underscore U.S. energy self-sufficiency.

However, markets note that the Strait of Hormuz is a key artery for global crude supply, meaning any actual closure would still deliver a major shock to international energy markets.