Why Trump 'Eats His Own Words' on 20% Strait of Hormuz Fee

US President Donald Trump has made a dramatic new declaration amidst escalating tensions with Iran, stating that the United States will take control of the Strait of Hormuz and impose a 20% fee on all cargo transiting the waterway. The strait, located between Iran and Oman, connects the Persian Gulf to the Gulf of Oman and is a critical maritime chokepoint through which roughly 20% of global oil trade and a significant portion of Gulf LNG exports pass.

Trump’s announcement marks a stark reversal of previous US policy. During earlier conflicts with Iran, Tehran had demanded the right to levy fees on vessels passing through the strait, a move Washington firmly rejected. At the time, US Secretary of State Marco Rubio, alongside Western allies, argued that such charges would violate international law.

In a statement, Trump said the US would become the ‘GUARDIAN OF THE STRAIT OF HORMUZ’ and would receive a 20% fee on all cargo as reimbursement for providing safety and security in the volatile region. He added that the process for implementing this would begin immediately.

Iranian Foreign Minister Abbas Araghchi responded on social media, asserting that Iran, not the US, has the right to control the strait and should receive compensation. He suggested the 20% figure was excessive, stating, ‘We will be fair.’

International reaction has been largely dismissive. David Goldwyn, President of Goldwyn Global Strategies, described the proposed tariff as excessive and questioned the US’s ability to guarantee safe passage, calling the plan a ‘bluff’. The UN’s International Maritime Organization stated there is no legal basis for imposing mandatory tariffs solely for transiting an international strait. Shipping industry players also questioned both the legality and the practical mechanism for enforcing such a policy.