Trump announces 20% levy on cargo for Hormuz naval escort

President Donald Trump announced on Truth Social yesterday that the US would use its Navy to keep the Strait of Hormuz open and charge shipowners a 20% cargo fee for safe passage.

The social media post also confirmed that the US will restart its blockade of Iranian ports near the strait, saying the move is intended to strengthen regional security. Trump claimed the waterway would remain open to all countries except Iran and described the United States as its new “guardian.”

The announcement rattled global markets, lifting oil prices and pushing stock markets lower as investors feared a wider regional conflict. Analysts warned the new fee could significantly raise shipping costs and disrupt global trade.

Trump’s announcements came as renewed fighting between the US and Iran threatened shipping through Hormuz just weeks after a ceasefire had begun restoring maritime traffic.

The renewed fighting began last week after the US struck back following Iran’s attacks on commercial shipping in the strait and its claim that vessels could only use routes authorized by Tehran. The US launched additional overnight strikes on Iran and announced that its blockade of Iranian ships would resume today at 4 p.m. ET.

Iran’s response to the 20% fee
Tehran rejected the proposal, with Foreign Minister Abbas Araghchi saying Iran controls the strait.

Analysts estimate that if the fee is based on cargo value, transporting a barrel of oil could cost about $16 more, raising total shipping costs to roughly $26 per barrel. A supertanker carrying two million barrels could incur an additional expense of more than $30 million, a cost that may eventually be passed on to consumers through higher fuel prices.

Oil topped $80 a barrel yesterday, its highest level since the US-Iran ceasefire in June.

Is it legal?
The International Maritime Organization noted that international law does not support mandatory transit fees in international waterways.

Several experts questioned whether the US can legally impose such charges or guarantee safe passage for every vessel. They warned that the proposal could further increase tensions in an already volatile region.

Shipping companies are also worried about growing tensions between the United States and Iran, which are competing for control of ship traffic in the strait. Many analysts remain skeptical that the proposed fee will take effect, warning it could disrupt global trade and place shipping companies in an even more difficult position.