Trump seeks 20% cargo levy as U.S. says it will police Hormuz

President Donald Trump announced on Monday that the United States will reinstate a naval blockade of Iranian ships and impose a 20% fee on cargo transiting the Strait of Hormuz, saying the U.S. will act as the waterway’s “guardian” and seek reimbursement for securing commercial shipping.

Trump posted the plan on his social account and repeated elements during a television interview, saying implementation would begin immediately but providing no operational details. He wrote, “The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran,” referred to a reinstated “IRANIAN BLOCKADE” and said the U.S. would be “reimbursed, at the rate of 20% on all cargo shipped.” In the interview he added: “We’re taking over the strait … We’re just going to hit them very hard, and we’re going to keep the strait, and we’ll probably run it.”

The announcement came hours after U.S. forces carried out additional strikes on Iranian targets and follows nearly a week of military exchanges that have eroded a June ceasefire. U.S. Central Command reported it conducted two rounds of strikes on Sunday against Iranian air-defence systems, missile and drone sites and other military infrastructure after accusing Tehran of attacks on commercial shipping and launches of missiles and drones.

Iran rejected the proposal. The Khatam al-Anbiya Central Headquarters issued a statement that Iranian armed forces would “forcefully confront any disruption or insecurity in the passage of commercial vessels and oil tankers” by U.S. forces operating outside routes designated by the Iranian military. Iran also warned neighbouring states that providing logistical support to U.S. operations would be treated as an act of war.

Financial markets reacted to the announcement and the renewed fighting. Brent crude briefly rose about 5% toward $80 a barrel and U.S. benchmark West Texas Intermediate gained a similar amount, while equity indexes including the Nasdaq 100 and the S&P 500 declined. Shipping through the strait, which normally carries about one-fifth of global oil shipments, remained subdued; analysts reported relatively few vessels transmitting GPS signals, some ships turning back after approaching the passage, and a limited number continuing without broadcasting locations.

Legal and practical questions surround the proposal. Under international law, ships generally have the right of transit passage through international straits. Charging a blanket 20% levy on all cargo could conflict with established navigation rights; fees are typically charged for specific services provided to individual vessels. The White House did not explain how the tariff would be administered, collected or enforced, or how it would apply to vessels of other nations.

Officials did not provide details on rules of engagement, the role of allied navies or the legal basis for imposing and collecting the cargo charge, leaving maritime operators and foreign governments seeking clarification on how the U.S. intends to secure and police the waterway.