Why the plan to charge a 20 per cent fee backfired and what it means for US-Iran tensions
Donald Trump's proposal to charge a 20 per cent toll for ships passing through the Strait of Hormuz has been abandoned after widespread criticism. The idea has left a lasting diplomatic impact, with Iran using the rhetoric to justify its own claims to maritime control in the region.
Why it matters
The proposal highlights ongoing volatility in US-Iran relations and the potential for off-the-cuff policy suggestions to have unintended geopolitical consequences.
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Share A A A Donald Trump’s preposterous proposal to take control of the Strait of Hormuz and charge a 20 per cent toll for the privilege of crossing safely lasted all of 24 hours.
It was always a non-starter – for one thing, a 20 per cent charge on the value of a ship’s cargo was a silly number, plucked from nowhere. It would have added about $US16 to the cost of a barrel of oil overnight, according to analysts.
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