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A reporter asked Trump at a Cabinet meeting on Tuesday whether he was comfortable with Oman, a longtime US ally, helping broker an end to the Iran war, jointly controlling the oil passageway with Tehran.
'The strait will be open to everybody,' Trump said before being asked who would control it. 'Nobody is going to control it... We will watch over it.'
Trump then turned his attention back to Oman, threatening to attack the country.
'Oman will behave just like everybody else or we'll have to blow them up. They understand that. They'll be fine,' Trump added.
It is unclear whether the President misspoke or why he would threaten to attack a Middle Eastern partner. The Daily Mail has contacted the White House for comment.
The Strait of Hormuz, which normally carries one-fifth of the world's oil, has been shut since Iran closed it after US and Israeli airstrikes in late February. The strait's reopening remains a key sticking point in peace talks.
Oman has a history of serving as a friendly mediator between the White House and the Iranian regime. The country helped broker the 2015 Iranian nuclear deal and has acted as a US defense partner in the Middle East since 1980.
The Trump administration does not appear to be backing away from the President's threats against Oman.
The State Department amplified the warning by tweeting out a video of it shortly after the meeting ended.
Trump also made military threats against Iran throughout the meeting as he discussed the ongoing negotiations with the regime.
The President made it clear that while Iran is desperate to come to the table, the United States is holding all the cards and will not accept a subpar deal.
'Iran is very much intent, they want very much to make a deal,' Trump said.
'So far, they haven't gotten there. We're not satisfied with it, but then we will be. We will be either that, or we'll have to just finish the job.'
The President claimed that if Iran does not make concessions to the US, then Secretary of War Pete Hegseth will 'finish them off.'
'I think we'll doing very well. They are starting to give us the things that they have to give us. If they do, that's great, and if they won't then the man on my left is going to finish them off,' Trump said before pointing towards a smirking Hegseth.