Trump Reinstates Iranian Blockade, Says US Will Be Reimbursed At A Rate Of 20% On All Cargo Shipped Through The Strait Of Hormuz

• Trump said the funding would cover any costs necessary to ensure safety and security in what he described as a highly volatile region.
• Earlier on Monday, Trump said during an interview with Fox News that the U.S. will take over and “probably” run the Strait of Hormuz, following several strikes by the United States on Iranian targets.
• U.S. Central Command said in a post on X that U.S. forces struck dozens of targets at multiple sites across Iran with precision-guided munitions.

President Donald Trump on Monday announced that the Iranian blockade has been reinstated, amid escalating tensions between the U.S. and Iran following hostilities that began last week.

Trump said in a post on Truth Social that all countries, except Iran, will have fair and open access to the Strait of Hormuz.

“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,” he said.

US To Be Reimbursed At A 20% Rate, Says Trump

Trump also added that the U.S. will be reimbursed at 20% of all cargo shipped through the Strait of Hormuz.

He said the funding would cover any costs necessary to ensure safety and security in what he described as a highly volatile region.

“The U.S.A. will be, from this point forward, known as ‘The Guardian of the Hormuz Strait’,” he said, while adding that this process and formation will begin immediately.

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Earlier on Monday, Trump said during an interview with Fox News that the U.S. will take over and “probably” run the Strait of Hormuz, following several strikes by the United States on Iranian targets.

U.S. Central Command said in a post on X that U.S. forces struck dozens of targets at multiple sites across Iran with precision-guided munitions, targeting capabilities it said were being used to attack international shipping in the Strait of Hormuz.

“U.S. forces are postured and prepared to ensure that freedom of navigation remains available to commercial shipping despite Iran’s continued unwarranted aggression, harassment, threats, and arbitrary declarations,” it added.

Crude Oil Prices Shoot Up

Meanwhile, crude oil prices rose on Monday. U.S. West Texas Intermediate (WTI) futures expiring in August were up 4.54%, hovering around $74.64 per barrel. Brent crude futures expiring in September were up 4.38%, hovering around $79.34 a barrel.

The United States Oil Fund ETF (USO) was up nearly 4, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) surged about 6%.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, fell 0.34%; the Invesco QQQ Trust ETF (QQQ) declined 1.06%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) edged lower by 0.21%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in ‘bullish’ territory.

Also See: El-Erian Explains Why Crude Prices Aren’t Soaring To High $80s Or $90s Despite Iran Conflict Heating Up – Markets Have ‘So Much Else’ To Focus

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