Sovereignty Dispute Over the Strait of Hormuz Escalates, Cooling U.S. Consumer Spending Weighs on Rate-Cut Expectations

Daily News

Summary:

Trump claims he will declare the Strait of Hormuz U.S. territory; U.S. consumer confidence falls for the first time in three months as inflation concerns intensify...

【Highlights】

1. Iran claims a “dual victory” in the war against the U.S. and Israel, with control of the Strait of Hormuz becoming a key negotiating point

2. Iran and Oman reach agreement on a shipping map for the Strait of Hormuz, while negotiations on a joint statement continue

3. Trump says he will declare the Strait of Hormuz U.S. territory

4. Trump has not explicitly endorsed Netanyahu for another term

5. Goolsbee: More evidence is needed to confirm that inflation is cooling

6. U.S. retail sales weaken in July, with auto and online purchases weighing most heavily

7. U.S. consumer confidence falls for the first time in three months as inflation concerns intensify

【Details】

Iran Claims a “Dual Victory” in the War Against the U.S. and Israel, with Control of the Strait of Hormuz Becoming a Key Negotiating Point

Iranian Parliament Speaker and chief negotiator Mohammad Bagher Ghalibaf said in a televised address on Sunday that Iran had achieved both a military and political “dual victory” in its war against the United States and Israel. He accused Washington and Israel of having completely failed in their attempt to use military action to trigger regime change in Tehran. Ghalibaf described the memorandum of understanding reached with the United States on June 17 as a document of honor for Iran and argued that the failure of the U.S. to achieve its initial wartime objectives demonstrated Iran’s success.

Iranian Army Commander-in-Chief Major General Amir Hatami issued a stern warning on the same day, stressing that Tehran would never allow the United States to restore its military presence in the region. He directly linked control of the Strait of Hormuz to the end of the war, calling it one of Iran’s key conditions for ending the conflict and vowing to do everything possible to protect it. The position effectively turns access to the strait into a strategic source of leverage for Tehran in negotiations.

Iran and Oman Reach Agreement on a Shipping Map for the Strait of Hormuz, While Negotiations on a Joint Statement Continue

Iranian Foreign Ministry spokesman Esmaeil Baghaei said Iran and Oman had reached an agreement on a shipping map for the Strait of Hormuz. The map is part of a broader agreement being developed by the two countries to manage maritime traffic through the strait. Baghaei said discussions on a joint statement were still underway.

The agreement is being presented as a separate arrangement between the two coastal states, aimed at ensuring the safe passage of vessels through the strait while safeguarding the sovereign rights of both countries. Baghaei added that developments in the next stage and the restoration of security in the Strait of Hormuz would depend on a combination of factors.

Trump Says He Will Declare the Strait of Hormuz U.S. Territory

Speaking about crime and law enforcement in Garden City, New York, U.S. President Donald Trump said that after defeating Iran, he would declare the Strait of Hormuz U.S. territory. He did not explain how the United States would assert sovereignty over the waterway or what legal basis it would rely on. The Strait of Hormuz is one of the world’s most strategically important energy corridors.

Trump gave an extensive account of U.S. military operations against Iran, claiming that Iran’s navy and air force had been destroyed and that its senior leadership had been severely weakened. He specifically claimed that all 159 Iranian vessels had been sunk and that 212 aircraft had been shot down. Trump provided no evidence to support these military figures.

Trump said Iran’s leadership no longer existed, making future negotiations difficult. “Nobody to negotiate,” he said, acknowledging that Iran still retained some missiles and drones but claiming that its production capabilities and radar intelligence systems had been severely damaged. Trump defended the U.S. use of military force against Iran, saying it was necessary to prevent Tehran from obtaining nuclear weapons.

Trump Has Not Explicitly Endorsed Netanyahu for Another Term

Israel is scheduled to hold parliamentary elections in October. Recent polls published by several Israeli media outlets show that Israeli Prime Minister Benjamin Netanyahu has relatively weak support. According to Axios on August 14, Trump has so far not explicitly endorsed Netanyahu in the Israeli election.

The report also said that several of Netanyahu’s rivals were concerned that Trump might support the incumbent prime minister. Sources said they had conveyed messages to Trump and his aides through intermediaries, urging him to remain neutral. A former U.S. official familiar with the matter said Netanyahu’s poor performance in the polls had discouraged Trump from becoming involved in the election.

Goolsbee: More Evidence Is Needed to Confirm That Inflation Is Cooling

Chicago Fed President Austan Goolsbee said Saturday that the latest CPI data were encouraging, but more data were needed before reaching a conclusion. He said he hoped to see further signs of cooling inflation over the coming months to ensure that inflation is moving back toward the central bank’s 2% target.

U.S. GDP and the labor market remain broadly stable, while continued weakness in consumer spending is a concern. However, the weakness in retail sales so far appears to be limited to a single month. Two recent productivity reports have also been disappointing. If productivity continues to decline, the Federal Reserve may need to reassess market expectations surrounding artificial intelligence.

U.S. Retail Sales Weaken in July, with Auto and Online Purchases Weighing Most Heavily

U.S. retail sales posted their largest decline in more than a year in July, as consumers cut back on purchases of automobiles and from online retailers. Data released Friday showed that retail sales, not adjusted for inflation, fell 0.6%. Excluding automobiles and gasoline, sales declined 0.2%.

The report indicated that consumers lost some momentum last month after a strong first half of 2026. Following a one-time boost from large tax refunds earlier this year and a decline in the personal savings rate to a four-year low in June, economists remain cautious about the outlook for consumer spending.

U.S. Consumer Confidence Falls for the First Time in Three Months as Inflation Concerns Intensify

According to a survey released by the University of Michigan on Friday, the preliminary consumer sentiment index fell to 51 in August, down from July’s final reading of 55.2 and below the median economist estimate of 55.

Consumers expect prices to rise 4.3% over the next year, slightly higher than the previous month and significantly above the level recorded before the Iran conflict erupted in February. They also expect prices to rise at an annual rate of 3.3% over the next five to 10 years. After improving for two consecutive months, consumer confidence in both the short-term and long-term economic outlook deteriorated. Expectations for the labor market have changed little since the beginning of the year.

The survey showed that consumers are becoming increasingly concerned about inflation, while concerns about unemployment have eased. The survey covered responses collected between July 28 and August 10. During this period, the U.S. national average gasoline price remained above $4 per gallon. Another report released Friday showed that U.S. retail sales posted their largest decline in more than a year in July, driven by weaker purchases of automobiles and online goods.

【Today’s Key Events】

20:30 (UTC+8) Canada July CPI

22:00 (UTC+8) U.S. August NAHB Housing Market Index

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data