(Sharecast News) - Donald Trump said on Monday that the US was reinstating the naval blockade on the Strait of Hormuz with immediate effect and that all commercial vessels will be charged "at the rate of 20%" on all cargo shipped.
In a post on Truth Social, the US president wrote: "The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating the IRANIAN BLOCKADE, so named because it is only stopping Iran's ships or customers from entering or leaving."

Trump said all other countries will have "fair and open" use of the Strait, through which around 20% of the world's oil supply is normally transported.

"The U.S.A. 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."

At 1620 BST, Brent crude was up 4.5% at $79.42 a barrel, while West Texas Intermediate was also 4.5% higher, at $74.64.

Chris Beauchamp, chief market analyst at IG, said: "The US' apparent decision to pile on the pressure on Iran by reinstating the blockade has lifted oil prices, though the reaction remains calm relative to the potential for supply disruption.

"Markets seem to be pricing in a resumption of negotiations in due course, given the lack of appetite for an extended standoff, but with oil stockpiles not fully rebuilt this is a risky view to take. This limited exchange of projectiles is still nowhere near the intensity of March's conflict, leaving hope for a relatively quick resolution."

Oil was already trading higher after the US and Iran exchanged further military strikes over the weekend.

The US Central Command (Centcom) said on Saturday that it had struck more than 140 targets across Iran in response to Tehran attacking another commercial ship in the Strait of Hormuz.

"US forces hit approximately 140 Iranian military targets with precision munitions launched by land- and sea-based fighter aircraft, drones, and naval vessels," it said. Targets included Iranian missile and drone sites, naval capabilities, ammunition storage facilities, communication networks, and coastal surveillance locations.

Centcom said that during three nights of strikes last week, it struck more than 300 targets "to degrade Iran's ability to attack civilian mariners and commercial vessels freely transiting the strait".

"Commercial vessel transits through the vital international maritime corridor continue," it added.

On Sunday, Centcom said it had completed a new wave of strikes against Iran, hitting dozens of targets at multiple locations with precision munitions. US forces struck Iranian military air-defence systems, coastal radar sites, missile and drone capabilities, and small boats. "The Strait of Hormuz is a vital maritime corridor for global trade," it said, adding that "Iran does not control it".

In retaliation for the US strikes on Saturday, Iran fired missiles and drones at the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain early on Sunday morning.

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