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

The move comes after Tehran claimed it had closed the waterway, and it revives a U.S. Policy that had been lifted only weeks earlier. Markets reacted instantly, with Brent crude climbing to the $80‑a‑barrel range, underscoring how a single policy shift can reverberate across global energy supplies.

Trump posted the declaration on Truth Social, declaring the United States “the Guardian of the Hormuz Strait” and insisting the toll will reimburse “any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.” No detail was offered on how the fee will be collected, but he promised implementation “immediately.”

Media additions

"The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating THE IRANIAN BLOCKADE."

Donald Trump, President of the United States, via Yahoo News

Iran’s Revolutionary Guard responded sharply, stating that the United States has no authority to manage the strait and warning that “continued interference could lead to greater incidents in the global oil and gas sector.” Tehran also reiterated that passage would remain suspended until “stability and calm” returned, a stance echoed in its claim that the waterway had been closed following what it described as an “unauthorized transit.”

The renewed confrontation follows a weekend of heavy missile and drone exchanges. U.S. Central Command reported more than 80 Iranian targets struck on July 7, ranging from air‑defence installations to over 60 IRGC boats. Iran, in turn, said it hit U.S. Facilities in Jordan, Bahrain, Kuwait and Oman, while Jordan, Kuwait and Bahrain each reported successful interceptions with no casualties.

Trump’s decision undoes a memorandum of understanding signed on June 17 that had lifted an earlier blockade imposed in April. The June agreement, which both sides have since disputed, was credited with easing tensions that led to a cease‑fire in late May. The latest flare‑up began after Iran seized a Cypriot‑flagged container ship on grounds that it violated Tehran’s transit rules. Satellite‑tracking data from Kpler showed that only 14 vessels crossed the strait on Sunday—a monthly low that highlighted the rapid decline in traffic.

Analysts note that the Strait of Hormuz funnels roughly 20 million barrels of oil daily, about 20 % of global petroleum consumption, and accounts for around one‑fifth of the world’s LNG trade. The International Energy Agency points out that India, Bangladesh and Pakistan collectively rely on almost two‑thirds of their LNG imports passing through Hormuz. A 20 % cargo charge, if levied on the total value of shipments, would add a substantial cost layer for oil, gas and other commodities, potentially inflating import bills for nations already sensitive to price swings.

For shipping companies, the announcement creates immediate uncertainty. It is unclear whether the toll will apply to the entire cargo value, whether energy products will be treated differently, or which U.S. Agency will administer the fee. The lack of operational detail means shipowners must await further rules while navigating a volatile security environment.

Key points at a glance

• Trump re‑imposes a naval blockade on Iranian ports and orders a 20 % charge on all cargo transiting the Strait of Hormuz.
• Iran rejects U.S. Authority, keeps the strait closed, and warns of escalation.
• U.S. Central Command reports over 80 Iranian targets struck on July 7; Iran counters with attacks across the Gulf region.
• Brent crude jumps about 5 % toward $80 per barrel; U.S. Drivers see a seven‑cent increase per gallon.
• The strait moves roughly 20 million barrels of oil and one‑fifth of global LNG daily; a 20 % fee could raise shipping costs dramatically.

Timeline of the escalation

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