Donald Trump Announces 20% Fee on Hormuz Cargo, Reinstates Iranian Port Blockade

US President Donald Trump said on Monday that the United States will charge a 20 per cent fee on all cargo shipped through the Strait of Hormuz. He also said the US military will reinstate the Iranian port blockade. He had earlier said that America would assume responsibility for guarding the Strait of Hormuz, arguing that Washington should be paid for securing the strategically important waterway.

One of the main battlegrounds in the West Asia conflict is now who controls the Strait of Hormuz. The strait is a highly consequential waterway. It handles 20 per cent of the global oil and gas supply.

"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 wrote on Truth Social, Indian Express reported.

Trump said Washington should be paid for guarding the strait. He argued that Washington cannot be expected to secure the volatile waterway for nothing and said the other nations are very wealthy.

"We’re going to keep the strait, and we’ll probably run it. We’ll become the guardian of the strait. Maybe we’ll call it the guardian angel of the strait. And we should be reimbursed for that." Trump told Fox News.

"We’re going to guard it. We’re going to get paid for guarding it—a lot of money. We’re going to be reimbursed, because the other nations are very wealthy." Trump added.

Escalating Military Conflict

The ongoing conflict and suspended traffic in the Strait of Hormuz have triggered a sharp rise in global oil and energy prices. This disruption is raising inflation globally.

US and Iranian forces continue to exchange fire, with Tehran claiming it attacked US military bases across Gulf nations and kept traffic in the Strait of Hormuz suspended.

"We had a deal. It was a done deal, and then they broke it. They always break it. We’ve had 10 deals with these people, and so we’re just going to hit them very hard." Trump said, referring to Iran.

Iran Demands US Exit

Iran's Islamic Revolutionary Guard Corps (IRGC) stated on Monday that the only way to restore normal shipping traffic in the Strait of Hormuz is to end US military intervention in the waterway. It warned that "continued interference could lead to greater incidents in the global oil and gas sector".

Iran shut the strait after an "authorised transit" was made. The passage remains suspended. Permits will only be issued when "stability and calm" are restored, as reported by Reuters.