US to charge ships for Hormuz passage: Trump
US President Donald Trump said Monday that the United States is “reinstating” a blockade on Iran in the Strait of Hormuz and will charge ships for safe passage, after another heavy exchange of fire threatened negotiations aimed at ending the war.
He said on social media that Iranian ships will no longer be able to travel through the Strait and America would charge a 20 per cent toll on eligible cargo, as the conflict with Iran has intensified after peace talks failed to deliver meaningful progress.
“We are reinstating the IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving,” Trump said online. “All other countries will have fair and open use of the Strait.” The President said the toll would help cover “any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.” A fifth of the world’s oil and gas passed through the strait before Iran asserted control over it after the start of the war.
The latest exchange of fire was sparked by an Iranian attack on a container ship on Sunday in the Strait of Hormuz. Iran has asserted control over the critical waterway for international oil and gas since the United States and Israel started the war on February 28.
Iran says it has the right to manage traffic through the strait and potentially charge fees in accordance with an interim peace deal reached last month.
The US and others dispute that, citing international law on freedom of navigation, and the American military has tried to establish an alternative route outside of Iranian control.
Iran and the US are nearly halfway through the 60-day period in which they were supposed to negotiate a permanent end to the war and an agreement on Iran’s disputed nuclear program. Instead, a series of attacks over the strait have raised fears of a return to all-out war and further disruption to the global economy.
Oil prices jumped nearly 5 per cent on Monday before falling back. US benchmark crude, which had risen to nearly USD 120 a barrel at the height of the war, was trading at around USD 72.92. Markets were mixed.
Meanwhile, the US military said it struck dozens of sites in the strikes on Monday, including air defence systems, radar sites, missile and drone equipment, and small boats. It said Iran does not control the Strait of Hormuz.
Trump suggested last week that the interim deal in the war was “over.” But mediators, including Pakistan, Qatar and Egypt, have continued efforts to reach a final agreement to end the war.
