President Donald Trump announced Monday the reinstatement of a naval blockade on Iranian ports and the imposition of new charges on commercial ships transiting the Strait of Hormuz. This action effectively dissolves the final concession to Iran within a preliminary peace agreement and introduces a new strategy, reportedly aimed at recovering costs incurred during recent hostilities.
"All other countries will have fair and open use of the Strait," Trump stated on his social media platform, declaring the U.S. would become "THE GUARDIAN OF THE HORMUZ STRAIT." He added that "as a matter of FAIRNESS" the U.S. would be "reimbursed" 20% of the cost of cargo shipped through the strategic waterway in exchange for ensuring safe passage. Trump elaborated in a Fox News interview, stating, "We guarded the strait for 50 years and never got paid for it. We want to be reimbursed for this -- for putting our people in danger."
The reimposition of the naval blockade nullifies the last remaining concession to Tehran from a memorandum of understanding signed just 26 days prior. This occurs amid heightened tensions between the U.S. and Iran, following several exchanges of strikes in recent days, with diplomatic efforts over the weekend failing to de-escalate the situation. Officials familiar with internal discussions had privately acknowledged that the deal, the result of months of intensive negotiations, was in jeopardy.
However, the announcement regarding the collection of fees from commercial vessels appeared to catch some within the administration, foreign governments, and international organizations by surprise. The Trump administration has not yet provided details on how or when these fees will be collected. U.S. Central Command announced that the blockade would resume at 4 p.m. ET on Tuesday, with further information to be disseminated to commercial mariners via formal notice.
Secretary of State Marco Rubio had previously expressed opposition to levying tolls on the waterway, characterizing it as a violation of international law. "There isn't a nation on earth that supports having to pay money to go through the straits," Rubio said in late June.
During negotiations for the memorandum of understanding with Iran, many of Trump's national security advisors reportedly harbored doubts about Tehran's commitment to the terms. The president's primary motivation, according to officials, was to address the economic impact of Iran's control over the Strait of Hormuz. As it became apparent that Iran would not cede control of the waterway, the administration's commitment to the deal reportedly diminished.
The conflict itself has incurred significant costs for the U.S. In late June, the White House requested over $67 billion in emergency defense funding to cover expenses related to the hostilities.
Trump has previously suggested profiting from traffic in the Strait of Hormuz, though he has also advocated for toll-free passage. Some U.S. officials have dismissed these varying statements as part of his negotiation tactics, while others noted his sustained interest in exploring unconventional methods for financing the war effort since its commencement in late February. In February, Trump had proposed a similar idea to The New York Times, suggesting the U.S. could act as "the guardian of the Middle East" in exchange for 20% of regional revenues if nuclear deal efforts failed.
The International Maritime Organization (IMO), a U.N. agency, stated it was aware of Trump's announcement and awaiting more details. "There is no legal basis through which to introduce mandatory tolls simply to transit through a strait," an IMO spokesperson said. The agency reaffirmed its stance against charging fees for passage through internationally navigated straits.
Iranian Foreign Minister Abbas Araghchi responded to Trump's declaration on social media, stating that Iran would propose a more equitable rate. "POTUS is absolutely right. Whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service. Iran has always been the GUARDIAN of the Strait and will remain so FOREVER," Araghchi posted. He added, "20% is of course too much. We will be fair."