President Donald Trump stated on Sunday that a deal with Iran 'could be soon' and that the U.S. is 'already' taking control of the Strait of Hormuz. He claimed Iran is 'basically begging' for peace negotiations, citing heavy battlefield losses. Trump also joked about renaming the Strait of Hormuz the 'Strait of Trump' during a speech in Miami.
In a separate interview with the Financial Times, Trump discussed seizing Iran's oil infrastructure. Meanwhile, Democratic Rep. Jim Himes accused Trump of 'flat-out lying' about negotiating with Iran, arguing the president made up claims to stabilize markets amid rising oil prices and financial turmoil. Himes noted that Iran has significant leverage due to its control over the Strait of Hormuz, which has caused gasoline prices to surge.
Wall Street analysts observed a return of the 'TACO' (Trump Always Chickens Out) playbook, where Trump signals escalation but steps back when markets react negatively. The S&P 500 rebounded after Trump postponed strikes on Iran's energy facilities, suggesting a focus on economic stability ahead of midterm elections.