U.S. to Reinstate Hormuz Strait Blockade and Impose 20% Cargo Fee, Oil Futures Surge

U.S. Central Command said the United States will reimpose a blockade of the Strait of Hormuz at 4 p.m. ET on Tuesday, July 14, and will enforce the restriction on vessels transiting to or from Iranian ports and coastal areas. The announcement coincided with a jump in oil futures, as Brent crude rose about 9.5% to exceed $83 a barrel and U.S. West Texas Intermediate topped $78 a barrel, levels not seen in nearly a month.

President Donald Trump stated that the strait would remain open and described the measure as a “guardian” effort, adding that the United States would seek reimbursement at a rate of 20% on all cargo shipped through the waterway. In a Fox News interview, he said the United States could not be expected to provide security “for nothing.”

The legal basis for the fee was not clarified, and the United States is not a party to the United Nations Convention on the Law of the Sea, which generally prohibits tolls on international waterways. During a prior blockade period from April 13 to June 18, U.S. forces redirected more than 140 compliant vessels, disabled nine non-compliant vessels, and allowed humanitarian aid shipments by over 50 commercial vessels.

The latest escalation follows recent U.S. strikes on roughly 140 targets in the region, according to Central Command, and Iranian retaliatory actions against U.S. bases and infrastructure in Gulf states, as reported by Iranian state media. Iran’s Revolutionary Guard Corps also reported intercepting two vessels it said were using an illegal route through the strait.

Data from intelligence firm Kpler indicated that vessel traffic through the strait fell 52% week over week over the weekend, and some ships have adopted “dark” crossing techniques to avoid tracking. While oil prices have risen, they remain well below the peaks seen earlier in the conflict, and market forecasts still place Brent near $80 a barrel by December.