Trump declares Strait of Hormuz open under US Navy control

President Donald Trump announced that the U.S. Navy has secured the Strait of Hormuz, declaring it open for approved commercial traffic. Trump’s statement highlights that the Navy has achieved “100%” control over the strategic waterway, having cleared it of mines. This development comes amid ongoing tensions in the U.S.-Iran conflict over maritime control in the Gulf. The situation at the Strait of Hormuz has been tense, with the U.S. conducting naval operations to ensure safe passage while Iran has contested the U.S. actions and called for an end to hostilities. Activity around the potential for a U.S.-Iran agreement over the Strait of Hormuz has seen fluctuations. Currently, the market for an agreement by August 15 remains at a low 8% YES probability, unchanged over the past 24 hours but down significantly from 36% a week ago. The August 31 market shows a more optimistic 26% YES probability, suggesting that participants see a greater chance of resolution by the end of the month. Key Takeaways Trump’s announcement appears consistent with ongoing U.S. efforts to secure the Strait of Hormuz and manage commercial traffic. Pricing in related markets suggests that participants may view...