President Donald Trump declared the US is "reinstating" a blockade on Iran in the Strait of Hormuz, announcing this decision on Truth Social. He stated the US will assume the role of "THE GUARDIAN OF THE HORMUZ STRAIT" and, for "FAIRNESS," will be "reimbursed, at the rate of 20% on all cargo shipped," for the costs of providing safety and security in this volatile region. Trump also indicated that the "process and formation will begin immediately.
Separately, in a Fox News interview, Trump reiterated his intention for the United States to "take over" the Strait of Hormuz, positioning the US as its "guardian" and seeking reimbursement for this control. He explained, "We’re going to get paid for guarding it – a lot of money," citing the wealth of other nations on the US side who shouldn't expect the US to provide such security for free. This comes amidst escalating attacks between the US military and Iran’s Revolutionary Guard, both vying for control of the Strait, a critical chokepoint for global oil-and-gas shipments.
This move by Trump follows a period of heightened tensions. The US recently launched new strikes against Iran and reimposed sanctions on Iranian oil sales in retaliation for attacks on commercial vessels in the Strait of Hormuz. These actions, particularly the economic sanctions, reversed a key concession made to Iran as part of a fragile ceasefire agreement that had reopened the Strait. The US Central Command stated its forces launched "powerful strikes" against Iran in response to its aggression, which it characterized as "unwarranted, dangerous, and a clear violation of the ceasefire." Global oil prices reacted to the news, with Brent crude rising 3% to $76 a barrel and US oil surging nearly 6% to over $70 for the first time since June 30.
Initially, the US Treasury Department had agreed to lift sanctions on Iranian oil for 60 days as part of the ceasefire, which Secretary Scott Bessent had presented as a sign of confidence in ongoing talks. However, the Treasury Department has now revoked this relief, giving buyers of Iranian oil until July 17 to cease transactions. Iran has reportedly relied on a "shadow fleet" of oil tankers to evade US sanctions, selling most of its oil to China and exporting roughly 50 million barrels in June. The reimposition of sanctions and the threat of a renewed naval blockade represent significant challenges to the ceasefire and raise questions about how the US plans to enforce these restrictions, potentially through further military escalation.
