Trump: Iran blockade reinstated, US to charge 20% on Strait of Hormuz cargo
President Donald Trump announced the reinstatement of a naval blockade on Iran and plans to charge a 20% fee on all cargo passing through the Strait of Hormuz. Trump claims the U.S. will act as the 'guardian' of the waterway to ensure global energy security.
Why it matters
This policy shift significantly escalates geopolitical tensions in a critical global oil transit corridor and could lead to increased energy prices and potential military confrontation.
WASHINGTON, July 13 (Reuters) - President Donald Trump said on Monday that the United States was reinstating a naval blockade on Iran and would be reimbursed 20% on all cargo shipped through the Strait of Hormuz after Tehran claimed it had closedthe vital waterway.
"The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating THE IRANIAN BLOCKADE," Trump said on Truth Social.
"The U.S.A... will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World," he said.
He said the process would begin immediately, but did not elaborate.
The U.S. president floated the idea earlier in a phone interview on Fox News' "Fox & Friends" program, saying the U.S. would probably take over the strait and should be reimbursed.
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