Donald Trump Announces 20% Strait of Hormuz Toll, Bars Iranian Ships From Key Waterway
U.S. President Donald Trump said Monday that Iranian ships will no longer be able to travel through the Strait of Hormuz and America would charge a 20% toll on other countries' eligible cargo, escalating tensions after weekend of attacks by both nations to assert control of the critical waterway.
U.S. President Donald Trump announced Monday that the United States is reinstating a naval blockade on Iran in the Strait of Hormuz and will begin charging a 20% toll on eligible commercial cargo transiting the strategic waterway. The move significantly escalates geopolitical tensions following a weekend of direct military exchanges between the two nations, both competing to establish control over the world’s most critical maritime oil chokepoint.
Declaring the United States as the new "Guardian of the Hormuz Strait," President Trump stated on social media that the waterway would remain open to international commerce under American supervision. He framed the newly announced 20% levy as a necessary reimbursement fee for the U.S. military to guarantee the safety and security of international shipping in the highly volatile region. 'We Will Run the Strait of Hormuz': Donald Trump Vows US Will 'Make Money' From Key Waterway (Watch).
U.S. Declares Naval Blockade and Transit Fees
The directive aims to completely halt Iranian maritime transit while keeping the shipping lane viable for other nations, according to the administration. “We are reinstating the Iranian blockade, so named because it is only stopping Iran's ships or customers from entering or leaving,” Trump wrote online, adding that the 20% toll on eligible cargo would cover "any and all costs necessary to do the job."
Hours prior to the announcement, Trump signaled the shift during a Fox News interview, suggesting the U.S. would effectively "take over" management of the strait and act as its primary security enforcement mechanism.
Weekend Clashes and Military Strikes Intensify
The policy shift follows a sharp spike in hostilities over the weekend. A fresh exchange of fire was triggered on Sunday, July 12, when Iranian forces targeted a commercial container ship inside the strait. Donald Trump Says US Will Reinstate Iran Naval Blockade, Proposes 20% Cargo Reimbursement.
In direct retaliation, the U.S. military conducted an extensive wave of airstrikes across Iran on Monday. U.S. officials confirmed that the strikes successfully targeted dozens of Iranian assets, including air defense systems, radar installations, drone equipment, missile facilities, and fast-attack small boats.
Despite the heavy military footprint, the Pentagon maintained that Iran does not hold operational control over the waterway, contradicting declarations from Tehran.
Iran Rejects U.S. Directives and Asserts Sovereignty
Tehran moved quickly to oppose the American declarations. The Persian Gulf Strait Authority (PGSA), a body recently created by Iran, posted alerts indicating it considered the strait temporarily closed due to "hostile actions by U.S. forces," stating that passage permits would only be issued through its official channels once regional stability is restored.
A spokesperson for Iran's Khatam Al-Anbiya military command warned that Iran would not permit foreign interference in the management of the passage. The command further cautioned neighboring Gulf states that any active cooperation with the U.S. plan would be treated as an act of war.
Iran claims it holds the sovereign right to regulate regional traffic and levy its own transit fees under the terms of a fragile interim peace agreement drafted last month. The United States, alongside its international allies, rejects Iran's claims, citing established international maritime law that guarantees global freedom of navigation.
Global Energy Markets and Economic Impact
The escalating standoff has sent fresh tremors through global energy markets, given that approximately one-fifth of the world’s liquefied natural gas (LNG) and petroleum supplies pass through the narrow channel.
Oil prices reacted sharply on Monday following the announcements, with global benchmarks spiking by nearly 5% during intraday trading before stabilizing later in the session. Analysts note that while global equity and energy markets remain highly sensitive to threats of supply disruptions in the Strait of Hormuz, long-term impacts will largely depend on whether commercial shipping traffic faces physical restrictions or prolonged delays.
(The above story first appeared on LatestLY on Jul 13, 2026 10:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).