US to charge ships 20% for protected passage through Strait of Hormuz

The United States said it will begin charging ships a 20 percent fee on cargo for protection from attacks during passage through the Strait of Hormuz.

On Monday, Donald Trump, the country’s president, announced on social media that the US will reinstate the blockade on Iranian ports, claiming that the Strait of Hormuz is open “and will remain OPEN, with or without Iran”.

“We are reinstating THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving. All other countries will have fair and open use of the Strait,” Trump said on TruthSocial adding that “as a matter of FAIRNESS, we will be reimbursed, at the rate of 20 percent 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”.

Trump entitled the US the “Guardian of the Strait of Hormuz”, confirming that the “process and formation will begin immediately”.

Read also: Iran closes Strait of Hormuz again over violations of transit rules

Trump’s comments follow a wave of renewed attacks between the US and Iran forces, breaking the fragile 60-day Memorandum of Understanding to cease fire barely halfway through.

The US said the same day that it had completed a new wave of offensive strikes against Iran on Sunday, hitting “dozens of targets at multiple locations with precision munitions” to degrade Iran’s ability to continue attacking international shipping flowing through the Strait of Hormuz.

Iran had previously claimed responsibility for projectiles launched against a Cyprus-flagged vessel transiting the Strait which allegedly had its Automatic Identification System turned off.

A section of the ceasefire’s resolutions included commitments by Iran to allow passage through the Hormuz Strait free of charge. Trump’s announcement unexpectedly overrides the provision, handing over the right to charge transit fees to the US. Oil prices have risen since the recent attacks, with a barrel now closing in on $80.