Iran has rejected US President Donald Trump’s proposal to impose a 20 per cent charge on cargo moving through the Strait of Hormuz, saying the waterway has long been under Iran’s protection and questioning the scale of the proposed fee.

Iranian Foreign Minister Seyed Abbas Araghchi responded to Trump’s announcement in a post on X, arguing that Tehran, not Washington, has historically ensured security in the strategically important shipping route.

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File footage of US Navy ships and aircraft operating in the Middle East | Image/US Central Command

Iran says it has always guarded the Strait

In his post, Araghchi wrote, “POTUS is absolutely right. Whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service. Iran has always been the GUARDIAN of the Strait and will remain so FOREVER.”

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He also took a swipe at Trump’s proposed transit charge, adding, “20 per cent is of course too much. We will be fair.”

The remarks came shortly after Trump announced on Truth Social that the United States would assume responsibility for securing the Strait of Hormuz and seek compensation from commercial shipping.

“The USA 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 per cent 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. The process and formation will begin immediately,” Trump wrote.

US announces renewed blockade

Trump also said the Strait of Hormuz would remain open while describing the move as the return of a blockade directed at Iran.

The US Army later announced that it would “resume blockading maritime traffic entering and exiting Iranian ports on July 14 at 4 pm ET”.

“US forces will enforce the blockade against vessels transiting to or from Iranian ports and coastal areas,” CENTCOM posted on X.

“All mariners are advised to monitor Notice to Mariners broadcasts and contact US naval forces on bridge-to-bridge channel 16 when operating in the Gulf of Oman and Strait of Hormuz approaches,” it added.

Fresh dispute over a key global shipping route

The latest exchange comes as Washington and Tehran continue military operations while disputing who has authority over the Strait of Hormuz. Iran maintains that an interim agreement reached last month gives it control over traffic through the waterway, including the right to collect tolls. The United States, however, says international law guarantees freedom of navigation regardless of the agreement.

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The Strait of Hormuz remains one of the world’s most important energy corridors, carrying around one-fifth of global oil and liquefied natural gas shipments.

FAQs:

Why did Iran object to Trump’s 20% Hormuz fee proposal?

Iran said it has always protected the Strait of Hormuz and called the proposed 20% charge excessive.

Why is the Strait of Hormuz so important?

It is one of the world’s busiest energy shipping routes, carrying about one-fifth of global oil and LNG supplies.