US President Donald Trump has earned a new nickname as tensions over Iran and the Strait of Hormuz fuel new market and political commentary. Analysts are now changing the US president’s earlier label “TACO” to the new term “NACHO.”The shift comes against the backdrop of an ongoing blockade between the Trump administration and Iran over control of and access to the Strait of Hormuz, a vital global energy channel that has continued to disrupt oil shipments and impact global fuel prices.Bloomberg columnist Javier Blas highlighted the new term in an article on X.“We thought we were getting a burrito, ‘Trump is always cowardly.’ But so far we’re getting a NACHO, ‘No chance of the Strait of Hormuz opening,'” Brass wrote.The Strait of Hormuz, which connects the Persian Gulf, Gulf of Oman and Arabian Sea, handles approximately 20% of global crude oil shipments. Any disruption to the channel would have a direct impact on global energy supplies and prices.Two months into the crisis, Iran has reportedly tightened its control over the strait, while the United States has imposed restrictions on Iranian ports and shipping activity.Iran has said it could consider reopening the waterway if the United States lifts restrictions, but Washington insists any easing is dependent on Iran meeting its nuclear enrichment program.Despite the ceasefire framework, negotiations between the United States, Israel and Iran have repeatedly stalled. A planned follow-up round of talks recently collapsed after Trump recalled his negotiating team to Washington.The disruption has pushed up fuel prices, which earlier this month hit $4 a gallon in the United States for the first time since 2022.What is a taco?TACO stands for “Trump Always Cowardly” and was coined by Financial Times columnist Robert Armstrong.It refers to a pattern observed by traders and analysts in which Trump announces aggressive tariffs or policy threats, markets react negatively, and then the measures are delayed, reversed or softened.This model has been widely used on Wall Street, with some investors buying stocks after market declines triggered by policy announcements, anticipating a rebound if the threats are not fully implemented.The rise of the “NACHO” labelNACHO stands for “No Chance of Opening the Strait of Hormuz” and is described by Javier Blas. This reflects growing skepticism among traders that the dispute over the Strait of Hormuz can be resolved quickly, even amid diplomatic efforts and ceasefire arrangements.White House spokesman Khush Desai disputed the claim, questioning critics of the administration’s record on trade and policy.“Do these geniuses think President Trump will never reach a voluntary most-favored-nation drug pricing agreement or renegotiate a broken trade deal?” Desai said in response to the new nickname, according to The Independent. Trump himself has previously rejected the use of the “TACO” label, calling it inaccurate and viewing his actions as a negotiating tactic rather than a reversal.“I chickened out? Oh, I’ve never heard of that,” he said earlier, arguing the market reaction was part of broader trading dynamics.
