Trump reinstates Iran blockade and proposes 20% Strait of Hormuz fee as US strikes continue for third night
US President Donald Trump reinstated the blockade of Iranian shipping and proposed a 20% fee on all cargo transiting the Strait of Hormuz, as American forces struck Iran for a third consecutive night following Iranian missile attacks on two Emirati tankers.
Escalation of hostilities
On July 13, Iran struck a US air base in Jordan with ballistic missiles, its Islamic Revolutionary Guard Corps said, and launched cruise missiles that hit two UAE oil tankers in the southern lane of the Strait of Hormuz. One Indian crew member was killed and eight others wounded. The UAE Ministry of Defense confirmed the attack, which occurred in Omani territorial waters. Earlier that day, the US Central Command began a new wave of strikes on Iran, completed after five hours. The attacks were the third consecutive night of American bombardment since Trump restored the blockade. Iranian media reported explosions in Bandar Abbas and Kish Island, with four wounded.
Iran will be hit very hard tonight, and we're going to hit them hard tomorrow. And there's not a damn thing they can do about it.
The blockade and the 20% fee
Trump said on Fox & Friends on July 13 that Iran had broken the interim ceasefire deal, prompting him to reinstate the blockade of Iranian shipping. Hours later he announced on Truth Social that the US would act as "THE GUARDIAN OF THE HORMUZ STRAIT" and collect a 20% levy on all cargo transiting the chokepoint. "The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating THE IRANIAN BLOCKADE," he wrote. Iranian foreign minister Abbas Araqchi responded on X that Tehran was the strait’s guardian and would remain so "forever", adding: "20% is of course too much. We will be fair." The US letter to Congress dated July 10 said hostilities resumed on July 7 and that Iran had violated the June 17 memorandum of understanding by attacking commercial vessels.
20% is of course too much. We will be fair.
Oil market upheaval
The latest escalation pushed Brent crude to a one-month high of $85.50 per barrel on July 14, up 2.6% after a 9.6% surge the previous session, the biggest daily gain since May 2020. Spot Middle East Dubai crude flipped into backwardation of nearly $1 a barrel, indicating tightening supply. Only five tankers transited the strait on July 13, ship-tracking data from Kpler showed, with no oil or LNG carriers entering. Yemen’s Houthi movement fired missiles at Saudi Arabia, threatening to extend attacks to Red Sea shipping, further endangering crude flows.
The mini-glut of oil has now evaporated, with a fresh eye of a potential of disruptions from the Bab el-Mandeb Strait if Houthis are joining the attacks.
- United States and Israel begin strikes on Iran.
- President Trump orders two-week ceasefire; later extended.
- Trump and Iran sign memorandum of understanding to end the war.
- Hostilities resume according to Trump’s letter to Congress.
- Trump sends formal notification to Congress.
- UAE tankers hit by Iranian missiles; Trump announces blockade reinstatement and 20% cargo fee; US begins new wave of strikes.
- US completes third consecutive night of strikes; Brent crude hits one-month high of $85.50; Iran says it struck US base in Jordan.
Congressional and legal friction
Trump’s July 10 letter to Congress formally notified lawmakers that hostilities against Iran had resumed on July 7, a move his administration saw as opening a new 60-day window for military action without congressional approval. The War Powers Act requires termination of unauthorized hostilities within 60 days. Trump had previously argued that the first window, which expired May 1, did not apply because he declared the conflict ended by the April 7 ceasefire. Democrats and some Republicans said the administration was misinterpreting the law. "The president can’t just wish away months of war," a senior House Democratic aide said. Both chambers of Congress passed a resolution last month directing Trump to withdraw US forces, reflecting bipartisan unease about the five-month-old war.
