US reimposes Iran blockade, Trump proposes 20% Hormuz toll

The US has reimposed a naval blockade on Iranian ports and President Donald Trump proposed charging a 20% fee on ships transiting the Strait of Hormuz, escalating tensions with Iran amid fresh waves of strikes by both sides. The US military resumed the blockade on Tuesday, a day after Trump announced the measure on Monday, according to US Central Command Source: CNN. The blockade had originally been in place from April to June before a 60-day interim deal was signed Source: AP News.

The toll plan

Trump declared the US would be 'The Guardian of the Hormuz Strait' and charge a '20% protection fee' on all cargo, saying it would cover the cost of providing security Source: Euronews. The proposal marks a reversal from the previous US position that the strait should remain free of tolls. Secretary of State Marco Rubio had last month called similar ideas 'unworkable' Source: CNN. Iran’s Foreign Minister Abbas Araghchi mocked the idea, writing on X: '20% is of course too much. We will be fair' Source: CNN. The International Maritime Organization said passage should remain toll-free under international law Source: CNN.

Escalating attacks

As the blockade was reimposed, the US carried out a third night of strikes on Iranian targets, including the port cities of Bushehr and Bandar Abbas Source: Guardian. Iran retaliated by attacking US allies: Bahrain, Jordan, and two UAE tankers in the strait. One Indian crew member was killed and several wounded in the tanker attacks Source: Guardian. Iran's Revolutionary Guard threatened to 'halt all energy exports from the Middle East' if the blockade continues, and warned of closing other oil and gas routes Source: AP News. At least 28 people have been killed in US strikes since last week Source: Guardian.

Market impact

Oil prices surged following the announcements: Brent crude rose 7.1% to $81.40 a barrel Source: CNN.