Former President Donald Trump announced on Monday that the United States would reinstate its naval blockade of Iranian ships and customers, effective at 20 GMT on Tuesday. He also declared the US as the "GUARDIAN OF THE HORMUZ STRAIT" and proposed a 20% reimbursement fee on all cargo shipped through the waterway. This fee, which Trump stated would be used to cover the costs of providing security, would amount to approximately $39 million per supertanker carrying 2 million barrels of crude, based on current oil prices around $80 per barrel. The announcement signals a significant policy shift, departing from the previous agreement that had aimed to end the US naval blockade and reopen the strait.
Trump's proposal has drawn widespread surprise and skepticism from the shipping industry, with many involved in maritime operations reporting no prior warning. The International Maritime Organization (IMO) and the UN's shipping agency have firmly opposed the imposition of mandatory tolls for transit through international straits, citing a lack of legal basis. Even Trump's former Secretary of State, Marco Rubio, had previously rejected the idea of any country charging fees in international waterways. However, Iranian Foreign Minister Abbas Araghchi, while calling the 20% fee "too much," acknowledged that those providing secure passage should be compensated, indicating a potential, though disputed, willingness to discuss such charges.
The reinstatement of the blockade and the proposed 20% toll, which applies to all ships, not just Iranian ones, represent a reversal of critical components of a recently signed memorandum of understanding that sought to end hostilities and de-escalate tensions between the US and Iran. This move occurred as a fragile ceasefire between the two nations fell apart. The Strait of Hormuz is a crucial international waterway, accounting for roughly 20% of the world's oil and gas flows. The shipping industry is currently assessing how such a fee, if implemented, would impact shipping decisions and routes, with one captain describing it as akin to "highway robbery."
Oil prices reacted to the news, with Brent crude surging 9% to around $82 a barrel and West Texas Intermediate crude rising 8% to approximately $77 a barrel. Beyond the direct financial impact, the announcement creates significant legal and diplomatic challenges, particularly for US allies. The lack of detailed information from the White House on how the fee would be administered or communicated to allies further complicates an already volatile situation, with the US Navy-led Joint Maritime Information Center confirming the blockade's immediate commencement.
