Trump proposes 20% cargo fee as US vows to police Strait of Hormuz

President Donald Trump said on Monday that the United States would reinstate its naval blockade of Iranian ships and charge a 20% fee on cargo passing through the Strait of Hormuz, marking a major escalation in Washington's response to renewed conflict with Iran.

The announcement came hours after another round of US strikes on Iranian targets and follows nearly a week of military exchanges between the two countries.

Trump said the United States would act as the "guardian" of the strategically important waterway while seeking reimbursement for securing commercial shipping.

“The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran,” Trump wrote on Truth Social. “We are reinstating . . . THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving. All other countries will have fair and open use of the Strait.”

He added: “The USA 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 also said the implementation process would begin immediately, although the White House did not provide details on how the proposal would be administered or enforced.

US-Iran conflict threatens fragile ceasefire

The latest announcement comes after the United States and Iran exchanged attacks over the weekend, further undermining a June ceasefire agreement intended to reopen the Strait of Hormuz and allow negotiations over Iran's nuclear programme.

Earlier on Monday, Trump reiterated that the United States would continue military operations against Iran.

“We’re taking over the strait,” Trump told Fox News on Monday. “We’re just going to hit them very hard, and we’re going to keep the strait, and we’ll probably run it.”

Iran rejected the proposal, with the Khatam al-Anbiya Central Headquarters stating that Tehran would not permit US interference in the management of the strait.

“Iranian armed forces will forcefully confront any disruption or insecurity in the passage of commercial vessels and oil tankers” by the US military outside the “routes designated by and without authorisation” from the Iranian military, a spokesperson said.

Iran also warned neighbouring countries against providing logistical support to US military operations, saying such cooperation would be viewed as an act of war.

The US Central Command said it carried out two rounds of strikes on Sunday targeting Iranian air-defence systems, missile and drone sites, and other military infrastructure after accusing Iran of attacking commercial shipping and launching missiles and drones.

Oil prices jump as shipping traffic slows

Financial markets reacted quickly to Trump's proposal and the renewed fighting.

Brent crude briefly climbed as much as 5% to nearly $80 a barrel before trimming gains, while US benchmark West Texas Intermediate also advanced around 5%.

Equity markets weakened, with the Nasdaq 100 and S&P 500 falling as investors weighed the implications of higher energy prices and rising geopolitical risk.

The Strait of Hormuz normally carries about one-fifth of global oil shipments, making any disruption to traffic a major concern for energy markets.

Shipping activity through the waterway also remained subdued.

A Financial Times report indicated that very few vessels transited the US-administered route near Oman's coastline with GPS signals active, while several ships reportedly turned back after approaching the strait.

Shipping analysts said only a limited number of vessels appeared to cross the passage without broadcasting their locations.

Trump's proposal also raises legal questions.

Under international law, ships generally enjoy the right of transit passage through international waterways, although fees may be charged for certain services provided to individual vessels.