President Donald Trump has ordered the United States to reinstate its naval blockade of Iranian ports and announced plans to charge a 20% security fee on cargo shipments passing through the Strait of Hormuz.
U.S. Central Command said the blockade will resume Tuesday at 4 p.m. Eastern, restricting maritime traffic entering and leaving Iranian ports. The military said it will continue supporting passage for non-Iranian-linked vessels traveling through the region.
Trump said the cargo fee would reimburse the United States for providing security in the strait, a critical shipping route that normally carries about one-fifth of the world’s oil. The administration has not yet detailed how the fee will be collected or enforced.
The proposed charge is already drawing opposition. The International Maritime Organization said there is no legal basis for imposing mandatory tolls on vessels simply passing through an international strait, while shipping company Hapag-Lloyd called the proposal fundamentally wrong.
Oil prices climbed following Trump’s announcement and the latest exchange of attacks between the United States and Iran. Brent crude rose above $86 per barrel Tuesday, increasing the possibility of higher energy and transportation costs worldwide.
