US President Donald Trump on Monday said that the United States will charge 20 per cent on all cargo shipped through the Strait of Hormuz, adding that the US military will reinstate the Iranian port blockade.
The US President had earlier said that America would assume responsibility for guarding the Strait of Hormuz, arguing that Washington should be paid for securing the strategically important waterway.
“The USA will be, from this point forward, known as “THE GUARDIAN OF THE HORMUZ STRAIT,” but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World,” Trump wrote in a post on Truth Social.
India may take a hit over Hormuz toll
The critical waterway is responsible for one fifth of global oil and gas transport, with a majority of it going to buyers in Asia. India imported about 40% to 50% of oil from the Strait of Hormuz before the war between US-Israel and Iran began.
India is the third largest consumer of crude oil with 88% dependency on import. According to a report by Nomura in March, India is among the three Asian economies most vulnerable to high oil prices. The other nations being Thailand and South Korea.
Proposed branding and compensation for protective deployment
In an interview with Fox News, the US President said, “We’re going to keep the strait, and we’ll probably run it. We’ll become the guardian of the strait. Maybe we’ll call it the guardian angel of the strait. And we should be reimbursed for that.”
Economic fallout of the regional energy blockades
One of the main battlegrounds in the West Asia conflict is now who controls the Strait of Hormuz, the critical waterway responsible for 20 per cent of global oil and gas supply.
Since Iran blockaded the strait, oil and energy prices have shot up, raising inflation globally.
Demands for reimbursement from regional oil powers
Referring to strait, Trump said, “We’re going to guard it. We’re going to get paid for guarding it – a lot of money. We’re going to be reimbursed, because the other nations are very wealthy. They’re on our side, and we can’t be expected to do that for nothing.”
Iran had earlier announced that Hormuz was shut after an “authorised transit” was made and added that the passage remained suspended and permits will only be issued as and when “stability and calm” were restored, Reuters reported.
Broken diplomacy and promises of forceful retaliation
“We had a deal. It was a done deal, and then they broke it. They always break it. We’ve had 10 deals with these people, and so we’re just going to hit them very hard,” Trump said on Iran.
IRGC conditions for restoration of commercial shipping
Iran’s Islamic Revolutionary Guard Corps (IRGC) in a statement on Monday said the only way to restore the normal shipping traffic in the Strait of Hormuz is to end the US military’s intervention in the critical waterway, and threatened that “continued interference could lead to greater incidents in the global oil and gas sector.”
US and Iranian forces continued to exchange fire, with Tehran claiming to have attacked US military bases across the Gulf nations and kept the traffic in the Strait of Hormuz suspended, triggering a rise in oil prices.
President Donald Trump speaks at a lunch in the White House Rose Garden, in Washington. (AP Photo) 
Share
