U.S. and Canada hold last-minute negotiations to prevent Trump's 50% tariffs

On August 18, 2026, US President Donald Trump declared the Strait of Hormuz as part of US territory, amid escalating tensions with Iran. The strategic waterway, a critical energy corridor, had been blockaded by Iran, leading to a crisis in global shipping. Trump posted a map of the strait on his social media platform, Truth Social, with the caption "New US Territory," amplifying his frustration over Iran's failure to comply with his demands.

In response, Iranian officials rejected Trump's claim, stating that the strait would remain closed until Washington lifted its blockade, fulfilled an interim agreement, and released frozen Iranian assets. Iranian parliament speaker Mohammad Bagher Ghalibaf emphasized that the strait would not reopen until all US commitments were met, including the lifting of sanctions and military operations.

Meanwhile, Israel emerged as the primary obstacle to negotiations, blocking over 90% of traffic through the strait. In a separate development, Iranian Foreign Minister Abbas Araghchi accused Israel of hindering the implementation of the memorandum of understanding and derailing efforts to reach a peaceful resolution.