The Gulf of Fonseca (Spanish: Golfo de Fonseca; pronounced: [ˈɡol.fo ðe fon.ˈse.ka]), part of the Pacific Ocean, is a gulf on Central America, bordering El Salvador, Honduras, and Nicaragua.
Fonseca Bay was discovered for Europeans in 1522 by Gil González de Ávila, and named by him after his patron, Archbishop Juan Fonseca, the implacable enemy of Columbus.
In 1849, E. G. Squier negotiated a treaty for the United States to build a canal across Honduras from the Caribbean Sea to the Gulf. Frederick Chatfield, the British commander in Central America, was afraid the American presence in Honduras would destabilize the British Mosquito Coast, and sent his fleet to occupy El Tigre Island at the entrance to the Gulf. Shortly thereafter however, Squier demanded the British leave, since he had anticipated the occupation and negotiated the island's temporary cession to the United States. Chatfield could only comply.
All three countries—Honduras, El Salvador, and Nicaragua—with coastline along the Gulf have been involved in a lengthy dispute over the rights to the Gulf and the islands located within. In 1992, a chamber of the International Court of Justice (ICJ) decided the Land, Island and Maritime Frontier Dispute, of which the Gulf dispute was a part. The ICJ determined that El Salvador, Honduras, and Nicaragua were to share control of the Gulf of Fonseca. El Salvador was awarded the islands of Meanguera and Meanguerita, while Honduras was awarded El Tigre Island.