Trump reinstates Iran blockade, charges 20% toll on Hormuz cargo

President Donald Trump reinstated a naval blockade on Iranian ports Monday and said the US would charge a 20% toll on all cargo passing through the Strait of Hormuz, escalating a conflict that threatens the flow of 15 million barrels of crude oil from the Gulf each day.

"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," Trump said in a post on Truth Social, describing the fee as compensation for providing security to what he called "this very volatile section of the world."

The US Energy Department said 8.5 million barrels of crude oil passed through the strait on Sunday alone with US military assistance, despite weekend clashes between American and Iranian forces. The waterway, which carries roughly one-fifth of the world's traded oil and gas supplies, has been at the center of the conflict since the war began. Iran's Islamic Revolutionary Guard Corps fired warning shots at two ships attempting to cross the strait Monday, state television reported, while the IRGC also struck US military facilities in Bahrain, Kuwait, Oman and Jordan in retaliation for American airstrikes.

The reinstated blockade effectively cancels the ceasefire agreement reached last month, which had lifted the US naval embargo in exchange for negotiations over the strait's status. Iran's Foreign Ministry said Monday it would not comply with the memorandum of understanding if Washington failed to meet its commitments, though talks with mediators from Qatar, Pakistan and Oman continued. The last time the strait faced a sustained blockade during the Iran-Iraq war in the 1980s, crude prices surged more than 30% over three months and global shipping costs tripled, according to data from the International Energy Agency.

The US military said it completed a new wave of strikes against Iran on Sunday, hitting air defense systems, coastal radar sites, missile and drone equipment, and small boats using fighter aircraft, naval vessels and sea drones for the first time in combat. CENTCOM said three Corsair unmanned surface vessels struck a submarine and ship maintenance facility at Iran's Bandar Abbas Naval Base. One person was killed and four others injured in a US strike on a water pumping station in the southwestern city of Mahshahr, Iran's official IRNA news agency reported.

Iran's IRGC responded by targeting the Sheikh Isa Air Base in Bahrain, the Ali Al-Salem air base in Kuwait, radar systems in Oman, and the Prince Hassan Air Base in Jordan, according to statements from the paramilitary force. Bahrain's military accused Iran of targeting civilians, saying air defenses "intercepted and destroyed a number of Iranian aerial attacks." Jordan said it shot down four Iranian missiles without casualties, while Kuwait activated air defenses against "hostile aerial targets."

The European powers — Germany, France and Britain — condemned Iran's attacks on commercial shipping and regional countries in a joint statement, calling for the restoration of the ceasefire and resumption of negotiations. United Nations Secretary-General Antonio Guterres warned of "catastrophic consequences" from a return to full-scale hostilities.

Iran's new supreme leader, Ayatollah Mojtaba Khamenei, vowed Saturday that Iranians would avenge his father's killing, while the IRGC accused Washington of "seriously endangering the security of the world's oil and gas supply." Iran's Foreign Ministry spokesperson Esmaeil Baghaei said Tehran was seeking a joint mechanism with Oman to manage the strait but accused US pressure on Oman of hindering those efforts. A regional official involved in mediation, speaking on condition of anonymity, said efforts to shore up the ceasefire continued Sunday, with Pakistan's foreign minister urging "de-escalation" on both sides in a call with Iran's top diplomat.

This article is for informational purposes only and does not constitute investment advice.