President Donald Trump announced that the US will assume control of the Strait of Hormuz, impose a 20% cargo toll, and reinstate a naval blockade on Iran starting July 14, 2026. The move follows the collapse of a June ceasefire and a heavy exchange of missile and drone strikes between US and Iranian forces. While Iran's Foreign Minister Abbas Araghchi disputed the 20% rate, the UN's International Maritime Organization and US Secretary of State Marco Rubio noted that charging transit tolls on international waterways violates international law. Brent crude oil prices jumped over 3% to exceed $83 a barrel as shipping traffic through the vital strait fell by more than half.
Strait of Hormuz toll proposal
- ▪President Donald Trump announced that the United States will impose a 20% toll on all cargo shipped through the Strait of Hormuz
- ▪President Donald Trump declared that the United States will be known as the "Guardian of the Strait of Hormuz" and will run the waterway
US naval blockade enforcement
- ▪The United States will reinstate its naval blockade of Iranian ports, oil terminals, and coastal areas starting July 14, 2026, at 4:00 p.m. ET
- ▪The US Navy-led Joint Maritime Information Center stated that any unauthorized vessel suspected of entering or leaving the blockaded Iranian area is subject to interception, diversion, and capture
Iran military retaliation strikes
- ▪The United Arab Emirates air defences engaged incoming missiles and drones launched from Iran on July 12, 2026
- ▪Iran's Islamic Revolutionary Guard Corps launched retaliatory missile and drone strikes against United States military facilities in Bahrain, Kuwait, Jordan, and Qatar
International maritime law violations
- ▪US Secretary of State Marco Rubio and Vice President JD Vance previously stated in June 2026 that international law prohibits any country from charging tolls on international waterways
- ▪The United Nations' International Maritime Organization stated there is no legal basis under international law to introduce mandatory tolls for transiting through an international strait
Regional ceasefire collapse
- ▪The current conflict between the United States and Iran began in late February 2026 following the assassination of Iran's Supreme Leader Ayatollah Ali Khamenei in US-Israeli airstrikes
- ▪President Donald Trump declared the mid-June 2026 temporary ceasefire deal with Iran "over" following repeated attacks on commercial shipping vessels
Global oil price volatility
- ▪Data from Kpler indicated that commercial vessel crossings through the Strait of Hormuz dropped by more than half compared to the previous week
- ▪Brent crude oil futures rose over 3% to trade above $83 a barrel on July 13, 2026, following the announcement of the US blockade and toll proposal
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