The United States announced new airstrikes against Iran and reinstated a naval blockade on Iranian ports following escalating tensions, with President Donald Trump declaring that the U.S. will charge 20% of the value of cargo transiting the Strait of Hormuz. Trump stated that the U.S. would become "THE GUARDIAN OF THE HORMUZ STRAIT" and would be "reimbursed" for providing safety and security in the critical waterway. This policy shift means that while Iranian ships or customers will be blocked, all other countries will have "fair and open use" of the Strait upon payment of the toll.
The move has sparked international criticism, with the International Maritime Organization (IMO) stating there is no legal basis for mandatory tolls in international straits. Secretary of State Marco Rubio, prior to Trump's announcement, had also opposed such fees, calling the Strait an "international waterway." However, Iranian Foreign Minister Abbas Araghchi, despite initially mocking Trump, later suggested that Iran, as the "GUARDIAN of the Strait," would also consider charging a fee, though perhaps less than 20%.
The resumption of the blockade, effective Tuesday at 4 p.m. EDT, and the proposed charges have significantly impacted global markets. Brent crude oil prices rose by 7.8% to $81.92 a barrel on Monday, although this remains below the nearly $120 per barrel seen at the height of the previous conflict. The Strait of Hormuz is a crucial chokepoint, through which a fifth of the world's oil and gas passed before Iran had effectively shut it down earlier in the war. The escalating conflict and the introduction of tolls threaten to disrupt global energy, fertilizer, and other goods markets further, despite a recent interim peace deal that aimed to reopen the strait without tolls.
