FTSE 100 Live: Stocks to rise as Trump threatens to declare Strait of Hormuz as US territory

Welcome back to the City AM liveblog. Oil prices are holding steady around $88 per barrel following the ongoing conflict between the US and Iran over the Strait of Hormuz. President Donald Trump has threatened to seize the narrow waterway and designate it as a US territory, a significant escalation in his rhetoric about control of the strait.

He stated he would make the declaration "pretty soon," following weeks of deadlock over its future as the US and Iran entered a sixth month of hostilities on February 28. "After we finish defeating Iran, which is being badly defeated, pretty soon I'll be declaring the Hormuz strait a territory of the United States," Trump asserted.

"Essentially, that's what it is. We have the blockade. No ships get through unless we want them to." Iran responded with General Amir Hatami dismissing Trump's comments as "a major mistake" and warning of "defenders who will break your legs." Iran's Deputy Foreign Minister, Kazem Gharibabadi, posted on X: "This strait will be opened and closed only under Iran's command, and so long as you do not accept the reality of defeat and stop indulging in fantasies, Iran will continue to enforce the blockade."

Only two vessels passed through the strait on Friday, with no crude oil shipments observed, according to Kpler ship-tracking firm analysis. This represents a major setback for the global oil market, as approximately 20% of supply previously flowed through the strait before the conflict, and over 130 ships typically transited the passage. The liveblog will continue to provide the latest market updates and analysis.