The United States has proposed a 20 percent cargo levy on ships transiting the Strait of Hormuz.
President Donald Trump announced the fee in a Truth Social post on Monday, stating it would reimburse the U.S. for the costs of providing safety and security in the volatile waterway.
He said, “All other countries will have fair and open use of the Strait.”
“The U.S.A. will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’ but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.
“The process and formation will begin immediately.”
Trump’s announcement comes amid the breakdown of a ceasefire agreement between the two nations, following the launch of U.S. military operations against Iran.
The U.S. leader has threatened to strike Iran “very hard” as retaliation for Tehran’s refusal to reach a settlement.
U.S. Central Command (CENTCOM) reported hitting roughly 140 targets over the weekend. The strikes continued through Monday afternoon, causing infrastructure damage and resulting in casualties.
Following accusations that the U.S. disrupted negotiations with Oman over ensuring safe passage through the strait, Iran has struck back by targeting American facilities in neighboring Gulf countries.
This latest escalation has caused oil prices to surge, with the global benchmark Brent crude jumping 3.60 percent to $78.7 per barrel from its recent low of roughly $70.
Backstory…
Meanwhile this comes barely twenty four hours after Iran announced that it has closed the Strait again.
On Sunday morning, Iran’s Islamic Revolutionary Guard Corps (IRGC) shut the Strait of Hormuz indefinitely after firing a warning shot at a vessel attempting to use an unauthorized route to cross the waterway.
In a statement published on the Arabic-language website of the semi-official, IRGC-affiliated Tasnim News Agency, the Islamic Revolutionary Guard Corps (IRGC) lamented what it termed “outside interference from foreign powers.” The group pointed specifically to multiple commercial vessels attempting to traverse the Strait using unauthorized routes.
“Given the instability caused by this unlawful interference from outside parties, the Strait of Hormuz will remain closed until further notice, and until regional interference by the US ceases,” the statement declared. “Consequently, neither commercial ships nor naval vessels will be permitted to pass.”
In response, the U.S. military announced it has launched a third round of strikes against Iran this week, responding to an attack on a vessel navigating the Strait of Hormuz.
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