US Imposes 20% Charge on Cargo Passing Through Hormuz

The US President also said he would impose a 20% charge on all cargo shipped through the Strait of Hormuz, a vital waterway that Iran controls, which is used by oil tankers to transport crude oil from Iraq and other countries.

oil tanker in the Strait of Hormuz

This new blockage and the tax could lead to a sharp increase in oil prices worldwide and may also impact the global supply chain, with economists predicting increased costs for consumers.

Iran has been under international sanctions since the Iran nuclear deal was withdrawn in 2018, and its economy has been struggling.

Iran's economy

The US president claimed on Monday that the move was aimed at pressuring Iran to return to the negotiations over the Iran nuclear deal.

Background on Port Blockade

The US initially imposed the port blockade on Iran in the early days of the Trump presidency, as part of a wider campaign to put pressure on Tehran over its nuclear programme. However, the blockade was lifted in 2020 as part of a US withdrawal from the Iran nuclear deal, which was negotiated in 2015 by the Obama administration. Following Iran's re-election of a hardline government in 2023, Trump now seems to be taking a harder stance on the Iranian regime.

Analysts warn that this action may lead to increased tensions in the region and could potentially spark a conflict between the US and Iran.