How do you capture a new territory and expand your country in 2026? In ancient times, it happened through war, invasion, physically overthrowing a government, and claiming the land. But in modern times, one apparently just needs to post on social media. That is what the POTUS did today. 

Donald Trump and the White House posted an image today showing the Strait of Hormuz as a brand-new US Territory. Perhaps the 51st state. Hormuz is open for all ships – the POTUS claimed, but maritime data would disagree.

To be clear, there has been no transfer of sovereignty. Hormuz remains an international strait between Iran and Oman. Trump’s claim may be political theatre. Or something more strategic, like an attempt to turn US military control into negotiating leverage. 

Hormuz is Nowhere Near Open

Kpler data cited by Reuters showed just six commodity vessels crossed on Monday. Before the war, almost 140 ships would pass through every day. 

So, yes, Hormuz might be technically open, but it’s not operational. Among the six ships that crossed, no VLCC crude supertankers or LNG carriers were recorded crossing. 

Oil prices clearly reflect that. Brent crude oil has jumped nearly 15% in August. And global pressure is reaching a boiling point. 

Then there is Bitcoin.

Bitcoin Price Could Care Less About Hormuz, More About Fed Action

BTC trades near $64,700, almost exactly where it stood a month ago around $63,900. During that period, oil surged, Hormuz talks broke down, and US Treasury yields climbed.

Bitcoin, for the most part, didn’t care. The slight uptake on BTC price this week came from positive ETF flow returning to the US spot and confirmation that the Fed won’t likely increase interest rates. 

But there is also little room for easing interest rates. Continuous Hormuz disruption (despite Trump’s claim of liberation) keeps oil elevated, which feeds inflation and higher bond yields, reducing the Federal Reserve’s room to ease.

So, the US President can call Hormuz American territory. Oil traders clearly care about who actually controls the ships.

Bitcoin, for now, seems more interested in the Fed.

Source: BeInCrypto