President Donald Trump announced the immediate reinstatement of a blockade on Iranian ports in the Strait of Hormuz on Monday, despite the US and Iran having agreed to lift the previous blockade in an interim deal on June 17. Trump detailed this new policy, which he named "THE IRANIAN BLOCKADE," on Truth Social, stating it would exclusively prevent Iranian ships or their customers from entering or exiting the strait. He emphasized that all other nations would retain "fair and open use" of the strategic waterway.
Under this new directive, the US will assume the role of "THE GUARDIAN OF THE HORMUZ STRAIT" and will levy a 20% charge on all cargo shipped through the strait to cover the costs of providing safety and security in the volatile region. This charge was not explained in terms of its implementation, and its practical implications remain unclear. The announcement follows a period of escalating tensions and renewed exchanges of strikes between the US and Iran, including a recent Iranian attack on a container ship cited by US Central Command (Centcom).
Many US allies and international observers are expected to criticize this new policy, particularly the 20% cargo charge, as the strait was previously open and unencumbered before Operation Epic Fury began on February 28. Iran's military has already declared it will not permit the US to interfere with its management of the key shipping route, and the International Maritime Organisation states that no country has a legal right to block shipping in international straits. This unilateral action by the US has led to concerns about rising oil prices and increased global inflation, reversing the market's previous return to pre-conflict levels after the June 17 memorandum of understanding. Brent crude prices surged over 4% on Monday and are now approximately 9% higher than before the initial US and Israeli strikes on Iran in late February, with analysts expecting prices to remain in the upper $70s per barrel for August and September due to heightened geopolitical risk.
