Search

Trump announces 20% Hormuz cargo fee, renewed blockade of Iranian ports

The president has previously said passage through the Strait of Hormuz should be free of tolls.

By Vered Weiss, World Israel News

President Donald Trump said Monday that the United States will charge a 20% fee on all cargo shipped through the Strait of Hormuz and resume a blockade of Iranian ports near the waterway as the U.S. and Iran exchange new strikes.

Trump declared the United States the “guardian” of the major oil shipping route and said cargo moving through the strait would be subject to the new charge.

“The U.S.A. will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’ but as such, and as a matter of FAIRNESS, 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,” Trump wrote in a Truth Social post Monday.

Oil prices rose and stocks declined following Trump’s announcement, which came as Washington and Tehran traded new strikes.

Trump also said the United States would restore its blockade of Iranian ports near the Strait of Hormuz. U.S. Central Command said the blockade will resume Tuesday at 4 p.m. ET.

Read  Trump says Iran agreed to '100% inspections' by IAEA and US teams

The president has previously said passage through the Strait of Hormuz should be free of tolls.

He has also raised the possibility of the United States collecting charges for traffic through the route.

The U.S. has opposed Iranian plans to collect tolls from ships traveling through the strait.

Maritime experts, regulators and senior Trump administration officials have said Iran’s proposed charges would violate international law.

Trump’s latest announcement places the United States in the role he described as providing safety and security in the Strait of Hormuz while seeking payment equal to 20% of cargo shipped through the waterway.

The Strait of Hormuz has become the center of the rapidly escalating conflict between Washington and Tehran. The renewed blockade and Trump’s proposed cargo fee were announced as the two countries continued exchanging military strikes.