Trump to charge cargo fee and reinstate blockade in Strait of Hormuz

Trump to Charge Cargo Fee and Reinstate Blockade in Strait of Hormuz

President Donald Trump announced on Monday that the United States is reinstating a naval blockade on Iran and will charge a 20% fee on all cargo shipped through the Strait of Hormuz. The move comes after Tehran claimed it had closed the vital waterway, sparking a sharp escalation in attacks between the US and Iran.

According to Trump, the US will be reimbursed for providing safety and security in the region, with the fee applying to all cargo shipped through the strait. The process is set to begin immediately, although Trump did not elaborate on the details. The US president floated the idea earlier in a phone interview on Fox News, saying the US would probably take over the strait and should be reimbursed for doing so.

The Strait of Hormuz, a vital route for global oil supplies, has become a key battleground in the conflict between the US and Iran. Iran's effective blockade of the strait has pushed up energy prices and increased concerns about inflation globally. The US and Iran have been engaged in a series of attacks over the strait, with the latest exchanges marking a significant escalation in both the pace and geographic reach of the conflict.

Iran's Revolutionary Guards have warned that continued US military interventions in the waterway could lead to greater incidents in the global oil and gas sector. The Guards have also stated that the only way to restore regular shipping traffic through the strait is to end US military interventions. Meanwhile, Tehran has declared the strait closed, with permits to be issued once "stability and calm" are restored.

The US and Iran are nearly halfway through a 60-day interim deal period, which was supposed to set up talks for a permanent end to the war. However, the situation has devolved into a series of attacks over the strait, worrying world leaders that the Iran war could fully resume.

Iran's Revolutionary Guards said in a statement on Monday that the only way to restore regular shipping traffic through the strait was to end U.S. Military interventions in the waterway, and warned that "continued interference could lead to greater incidents in the global oil and gas sector." U.S. And Iranian forces exchanged heavy missile and drone attacks over the weekend and into Monday, with Tehran saying it had struck U.S. Military facilities across the Gulf and kept the Strait of Hormuz closed, driving oil prices higher.