President Donald Trump stated on Monday that the United States is reactivating an Iranian blockade in the Strait of Hormuz and will impose a 20% charge on all cargo traversing the waterway. This fee is intended to reimburse the U.S. for the costs of providing safety and security in the region, a measure Trump deems necessary amid ongoing tensions.
Trump clarified on social media that the Strait of Hormuz remains open, but the blockade specifically targets Iranian ships or their customers. This decision effectively reverses the U.S. stance that the strait should remain open without tolls, as it was before the U.S. and Israel reportedly attacked Iran on February 28. The move follows recent exchanges of fire, which had already cast doubt on a fragile interim peace deal reached last month.
Prior to this announcement, the Strait of Hormuz, a critical chokepoint, accounted for the transit of one-fifth of the world's oil and gas. Its effective closure by Iran at the war's outset had significantly driven up global energy and goods prices. While traffic had seen a minor recovery after last month's agreement, it remained well below pre-war levels. The International Maritime Organization, a U.N. agency, has expressed opposition to mandatory tolls for passage through international waterways.
This development further strains the precarious ceasefire agreement between the U.S. and Iran. Secretary of State Marco Rubio had previously opposed Iran charging fees for transit, highlighting that no Gulf countries supported such tolls. However, Iran maintains its right to manage traffic and potentially charge fees under the interim peace deal and has vowed to resist U.S. interference.
Oil prices have reacted to the deteriorating peace agreement. Brent crude was up nearly 5% on the day, nearing $80 a barrel, at 10:40 am ET. This reflects market concerns over global oil supply disruptions and increased shipping costs.
