Trump Declares Strait of Hormuz ‘American Territory’, Claims Iran Not Ready For 'Right Deal'

US President Donald Trump declared the Strait of Hormuz "American territory" during appearances at a Myrtle Beach rally and Joint Base Andrews, amid growing friction over the vital shipping lane. Trump warned Tehran over its nuclear ambitions.

"We cannot let them have a nuclear weapon; we cannot let Iran have a nuclear weapon, or you will see some very bad things," Trump said. "We went down, and we stopped them; they will never have a nuclear weapon."

Trump said Iran wanted an agreement but was not prepared to accept the "right deal" while asserting American control over the waterway. "They want to make a deal so badly, we don't even know if we want [a deal] because I view the Strait of Hormuz as an American territory right now, it's an American territory," Trump said. "So they would love to make a deal, but they're not ready to make the right deal in my opinion."

Speaking to reporters at Joint Base Andrews, Trump said the US had "total control" over the region. "We're just going to sort of see what happens, and we have total control, as you know, of the border; we have total control -- if you look at the blockade, we have total control of that entire region having to do with the Strait of Hormuz," Trump said.

Trump pushed his territorial claim by sharing an AI-generated image on Truth Social depicting the waterway as "NEW U.S. Territory".

Iranian officials immediately rejected the US President's assertions. Iranian Deputy Foreign Minister Kazem Gharibabadi addressed the claims on X.

"Just as Trump correctly wrote the name of the eternal Persian Gulf, soon his delusion regarding the Strait of Hormuz will either be corrected or we will correct the delusions of this deluded man," Gharibabadi said.

Iran's Supreme National Security Council head Mohsen Rezaei also responded on X.

"The gap between America's inability to reopen the Strait of Hormuz and its claim to own it is greater than the 7,000-mile distance between Washington and the Strait itself. Welcome to the post-American order in the Persian Gulf," Rezaei said.

Iran's Military and Economy

Trump said American actions have effectively dismantled Tehran's armed forces. During an interview with 77 WABC Trump discussed the current state of Iranian leadership.

"The Navy's gone, the Air Force is gone, the leadership is gone," Trump said. "Part of the problem is that so many of the leaders are gone; it's not easy to make a deal. Nobody knows who's leading. But I think the public sees what we're doing because Iran can never have a nuclear weapon."

Trump outlined a severe economic crisis gripping the nation. Trump said Iran is suffering from 300 per cent inflation, a valueless currency and an unpaid military. "It's very hard for them to knock out anything. They're in bad shape. [They] have inflation that's 300 % there. Their currency is virtually valueless. The military is not being paid. And so they're in bad shape," Trump said.

Despite this economic strain, Trump said Tehran retains some military hardware.

"Now they have some missiles. They have some drones. Their capacity to build them is very low right now compared to what it was five months ago," Trump said. He also said US military action was necessary to prevent Tehran from developing a nuclear weapon. "The key that the reason I did it was that we had no choice, and I would have done it again, a hundred times. They cannot have a nuclear weapon, and they won't be having a nuclear weapon."

Blockade and Economic Warfare

The maritime confrontation continues to escalate in the Arabian Sea. The US Central Command stated on X that American forces are actively enforcing a blockade against Iran, sharing footage of US Marine Corps MV-22B Osprey aircraft operating from the USS Boxer.

CENTCOM stated that US forces diverted 67 merchant ships, incapacitated three and inspected two more by August 20 to enforce the embargo. "As of Aug. 20, U.S. forces have redirected 67 commercial vessels, disabled 3 and boarded 2 to ensure compliance," CENTCOM stated.

Trump said the Strait remains open and the naval blockade has been effective. "Right now the Strait is open. A lot of boats are coming through," Trump said, adding that "the naval blockade has been extremely effective" and "100 per cent successful".

Trump announced a sweeping financial offensive to run parallel to the naval operations, warning countries providing support to Tehran of "tremendous economic consequences".

"No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. TRAGICALLY, for them, they have failed to take it," Trump said in a Truth Social post.

"Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale," Trump posted.

The new economic measures will directly target Iranian revenue streams. Trump said the operation restricts oil smuggling, swap lines, cash transfers, exchange houses, ship registries and front companies. "Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies -- It all needs to stop NOW," Trump said. He urged allies to join, adding, "These historic measures will cripple them and their ability to project terror worldwide." He separately reiterated, "IRAN WILL NEVER HAVE A NUCLEAR WEAPON."

Iran's Counter Conditions

Iranian leaders dismissed the financial threats and outlined specific demands. Iranian Foreign Minister Seyed Abbas Araghchi said the US measures mask domestic American problems.

"The so-called 'Economic D-Day' is a diversion from America's own crisis: unprecedented debt and surging interest costs," Araghchi said on X. "Doubling down on failed policies will only bring further defeat -- and enmity of Iranians. US economic terrorism threatens global economy and sovereignty worldwide," Araghchi added.

Tehran maintains a firm stance on maritime access. Iranian Parliament Speaker Mohammad Bagher Ghalibaf conditioned the reopening of the Strait of Hormuz on a 14-point memorandum of understanding.

The Iranian conditions require Washington to lift the naval blockade, release frozen assets and ease oil sanctions.