Trump Reinstates Iran Blockade and Demands 20% Charge on All Hormuz Cargo

US President Donald Trump reinstated the US blockade of Iranian ships transiting the Strait of Hormuz and demanded a 20% reimbursement for all other cargo shipped through the waterway, according to Bloomberg.Trump asserted the US would become the waterway's guardian. US military forces will resume blockading traffic to and from Iranian ports beginning Tuesday at 4 p.m. New York time, Central Command said.The military completed its latest five-hour mission aimed at degrading Iran's ability to attack commercial shipping. Brent crude rose above $85 a barrel for the first time in a month, marking the biggest gain since May 2020.The UAE Defense Ministry said two tankers, the Mombasa and Al Bahiyah, were hit by Iranian cruise missiles, killing one Indian national and wounding eight others. The IRGC Navy struck US weapons depots and housing at Bahrain's Juffair base.Iran's government said the deal has entered a crisis phase and it won't abide by terms as long as the US violates commitments. Foreign Minister Abbas Araghchi mocked the toll, saying Iran has always been the guardian and 20% is too much.More than 10 shipping market participants said they were blindsided by the fee proposal. Ship transits through the strait fell to their lowest level in a month.Washington Institute fellow Holly Dagres said Trump appears to be trying to play the Iranians at their own game, but the Iranians won't give up the strait easily.A 20% fee would add about $32 million to the cost of a fully loaded VLCC. The International Maritime Organization said it stands firmly against charging fees for passage through straits used for international navigation.