US President Donald Trump has announced a proposal to charge a 20% fee on all cargo moving through the Strait of Hormuz. He also said the US military would resume a naval blockade of Iranian ports and take responsibility for protecting the strategic waterway.
Trump said the United States would act as the “Guardian of the Hormuz Strait” and should be paid for securing shipping routes. He argued that countries using the passage should share the cost of maintaining safety.
The Strait of Hormuz carries nearly 20% of the world’s oil and gas trade. Any disruption in the region can quickly push global energy prices higher.
India could feel the impact if tensions continue. Before the conflict, around 40% to 50% of India’s crude oil imports passed through the Strait of Hormuz. As the world’s third-largest oil consumer, India depends on imports for about 88% of its crude oil needs.
Iran has linked the reopening of normal shipping to an end to US military involvement in the area. Meanwhile, oil markets remain volatile as investors watch developments closely.
The proposed 20% cargo charge has been announced by Trump, but details on its implementation and legal framework have not yet been released.