Trump Reinstates Iran Blockade, Demands Hormuz Toll

The United States is considering imposing a 20% tariff on goods passing through the Strait of Hormuz and is reconsidering a naval blockade of Iran, which has been lifted by President Donald Trump, as war and conflict heat up dramatically between Washington and Tehran over control of the strategically important waterway.

Trump's Announcement

Trump was quoted as saying in a Truth Social post: "The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating THE IRANIAN BLOCKADE.

He added that the "U.S.A. will be, from this point forward, known as 'THE GUARDIAN OF THE HORMUZ STRAIT'" and the U.S. would be reimbursed at 20% of all cargo transported in the area for the costs required to provide safety and security. US: imposes 20% levy on Strait of Hormuz cargo in the event of a blockade by Iran, says Trump.

In an interview with Fox News, Trump stated that it would be his to keep the strait and "we'll probably run it. We'll be the guardian of the strait" as he said.

Iran's Rejection

Washington's claim to authority over the passage was vehemently challenged by Tehran. Iranian foreign minister Abbas Araghchi responded in a letter to the Iranian newspaper Fars that Iran, not the US, is responsible for the strait and that it is Iran's right to be paid for this service, and that 20 %, of course, is too high.

We will be fair. Iran's Revolutionary Guards also separately said the return of normal shipping traffic was only possible with the withdrawal of the U.S. presence in the region.

A Conflict that is Rapidly Escalating

This blockade announcement came after a weekend of hectic exchanges. The IRGC fired on another vessel and declared the strait "closed until further notice," which led to two US air raids against Iran. On Monday, the US military reported that they struck dozens of targets, and Iran's IRGC reported new attacks in Bahrain, Jordan, Kuwait and Oman.

For the first time, CENTCOM reported that American forces fired sea drones in combat and hit an Iranian submarine and a maintenance base at Bandar Abbas naval base.

International Pushback

The UN's maritime regulator objected to the toll itself. IOMA stated that it "opposes the imposition of tolls to ships passing through straits used for international shipping. A second Gulf source said the U.S. had not yet broached the subject of tolls with regional allies prior to the announcement.

Economic Fallout

The renewed conflict has already had an impact on energy markets. Trump's announcement sent oil prices surging and stocks down as the strait plays a disproportionately important part in the provision of global crude.

About one-fifth of world oil trade goes through Hormuz, and if the situation escalates further, it could increase inflationary pressure, not just in the Middle East but also reaching consumers in far-flung countries like Pakistan and South Asia.