Donald Trump announces 20% toll on ships in Strait of Hormuz; to ‘reinstate’ Iran blockade
Trump announces toll for Hormuz: US President Donald Trump said on Monday that the US is “reinstating” a blockade on Iran in the Strait of Hormuz. Not only that, Trump also announced that the US would begin charging ships for safe passage through the waterway. The announcement comes after another major exchange of fire cast fresh uncertainty over efforts to negotiate an end to the conflict.Before Iran asserted control over the Strait of Hormuz after the war began, about one-fifth of the world's oil and gas supplies moved through the strategic waterway.The latest escalation followed an Iranian attack on a container ship in the Strait of Hormuz on Sunday.
Iran has maintained control over the vital route for international oil and gas shipments since the United States and Israel launched the war on February 28.Trump’s 20% charge for ‘safe’ passage via HormuzIn a social media post, Trump said Iranian vessels would no longer be permitted to transit the strait and that the US would impose a 20% toll on eligible cargoes.
The announcement came as the conflict with Iran intensified following the collapse of peace talks that failed to produce meaningful progress.“We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving,” Trump said online. “All other countries will have fair and open use of the Strait.”Trump said the toll would be used to meet “any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.”Iran’s claimsTehran says it is entitled to regulate traffic through the strait and, if necessary, levy transit charges under the terms of an interim peace agreement reached last month.
According to an AP report, the US and several other countries reject that position, arguing that international law guarantees freedom of navigation. In response, the US military has sought to establish an alternative shipping route outside Iranian control.Iran and the US are now approaching the midpoint of the 60-day period during which both sides were expected to negotiate a permanent settlement to the war and reach an agreement on Iran's disputed nuclear programme.
Instead, repeated attacks in and around the Strait of Hormuz have heightened concerns about a return to full-scale conflict and the prospect of further disruption to the global economy.Oil prices climbed almost 5% on Monday before giving up much of those gains later in the session. US benchmark crude, which had surged to nearly $120 a barrel during the peak of the conflict, was trading at around $72.92.
Equity markets delivered a mixed performance.The US military said it carried out strikes on dozens of targets across Iran on Monday, including air defence systems, radar installations, missile and drone equipment, as well as small boats. It also maintained that Iran does not control the Strait of Hormuz.Get the latest business news and top stories.
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