Trump unveils Strait of Hormuz shipping fees, Iran port blockade
Aerial view shows oil storage tanks at the Sunoco LP Fuel Supply Terminal in Austin, Texas, on June 15, 2026. Oil held in the U.S. Strategic Petroleum Reserve has fallen to its lowest levels since 1983 as the Trump administration continues to release emergency crude to help offset rising fuel prices due to the war with Iran.
Brandon Bell | Getty Images News | Getty Images
Oil prices rose on Tuesday after US President Donald Trump announced plans to impose shipping fees on the Strait of Hormuz and reimpose a blockade of Iranian ports; This has raised concerns about possible disruptions in global crude oil supplies.
US West Texas Intermediate futures for August delivery rose 2.27% to $79.91 per barrel. International benchmark Brent crude futures for September delivery rose 2.14% to $85.11, maintaining their gains after rising 9.6% in the previous session.
The United States will impose a fee of “20% on all cargo shipped” on ships passing through the Strait of Hormuz, Trump said on Monday, after describing the United States as the “guardian” of the vital oil transit route.
In a post on Truth Social, Trump announced that Washington would resume the blockade of Iranian ports near the strait and further escalate the conflict with Tehran. U.S. Central Command later said the blockade would go into effect at 4 p.m. ET on Tuesday.
Citi warned that Trump’s proposal to impose shipping fees in the Strait of Hormuz materially increases the risk of further escalation of military tensions.
“The possibility that the Iranian regime will move away from the MoU by after the US midterm elections has also increased, a scenario that will likely be viewed as higher for longer oil prices,” the bank said in a report published early Tuesday. he said.
Before the United States and Israel launched an attack on Iran on February 28, approximately one-fifth of global oil supplies passed through the Strait of Hormuz. Shipping traffic plummeted after Iran began targeting ships in the waterway in early March, but began to recover after Washington and Tehran’s interim agreement.
