Trump announced the resumption of the blockade of the Strait of Hormuz against Iranian vessels
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U.S. President Donald Trump stated that Washington will once again impose a blockade on Iranian ships passing through the Strait of Hormuz. It will remain open to everyone else, the American leader assured. In addition, the U.S. plans to levy a 20% tax on the value of cargo transported through the strait.
"From this moment on, the United States will be known as the 'GUARDIAN OF THE STRAIT OF ORMUZ.' But in the interests of FAIRNESS, we will be reimbursed at a rate of 20% of the value of all cargo transported—to cover any costs necessary to ensure the safety and security of this extremely unstable section of the world’s maritime routes,” Trump wrote on the social media platform Truth Social.
According to Trump, “the process of implementing and shaping” this plan “will begin immediately.” The White House has not yet disclosed additional details about the initiative, including exactly how this mechanism will work and whether it has been discussed with U.S. allies in the Persian Gulf region.
Oil prices continued to rise following this announcement. September futures for the benchmark Brent crude rose 4.4%, nearly reaching $80 per barrel. August futures for U.S. West Texas Intermediate rose 4.6% and were trading at $74.7 per barrel.
All U.S. stock indices ended up in the red: The Dow Jones, which had gained about 0.2% at the open, reversed course and closed down 0.2%. The S&P 500 fell 0.3%, and the Nasdaq Composite lost 0.8%.
Several U.S. officials, including Secretary of State Marco Rubio, as well as Trump himself, have previously stated that the strait should be open to all, Bloomberg notes. The new requirements could cause discontent among U.S. allies in the Persian Gulf, who export energy resources through the Strait of Hormuz, the agency warns.
A senior adviser to Iran's supreme leader warned on Monday that Tehran would fight to maintain control of the strait.
This article was AI-translated and verified by a human editor
