The Strait of Hormuz is back in the spotlight after the US announced it would reimpose its blockade of ships going to and from Iranian ports through the critical waterway, following multiple Iranian attacks on vessels in recent weeks.
The blockade: The US military will resume the naval blockade starting 4 p.m. ET today, according to US Central Command. The original blockade had lasted from April 13 to June 18, before Washington and Tehran signed the memorandum of understanding to work towards an end of the war.
Protection fee: Trump suggested the US could charge a 20% fee for protection for ships to safely cross the strait. He offered no clarity on how the charge would work, who it would apply to, and how it would be enforced. The strait is an international waterway where ships have the right of free passage, and the fee may be high enough that no party is willing to pay it, experts told CNN.
Rubio’s comments: The Trump administration has previously said that ships should be able to transit the strait without paying any fees to any entity. Just last month, Secretary of State Marco Rubio repeatedly denounced the idea of charging tolls for the strait, describing it as “unworkable” and “not doable.”
Iran’s response: Iran’s top diplomat mocked Trump’s proposal, insisting that Iran instead should be the one collecting any fees. “20% is of course too much. We will be fair,” wrote Foreign Minister Abbas Araghchi on X.
Global reaction: The International Maritime Organization (IMO) said that passage through the strait “should remain free of any tolls and charges, in accordance with international law.”
Markets react: Oil prices rose sharply after Trump’s announcement. Brent crude gained 7.1% to $81.40 a barrel, and US oil rose 7.2% to $76.50 — both surging to their highest level since June 15.
