Trump's Hormuz Blockade and 20% Cargo Tax Drive Oil Prices Higher

Key Highlights

Table of Contents

President Trump declared the US will restore its Strait of Hormuz blockade while imposing a 20% fee on all transported cargo
Brent crude surged approximately 4.7% toward $80 per barrel; WTI climbed 4.6% approaching $75
Maritime traffic through the Hormuz strait plummeted 52% on a weekly basis, with ships disabling tracking systems
Tehran dismissed Trump’s statements and cautioned neighboring nations that US cooperation would constitute an act of aggression
Current oil values stay significantly beneath the wartime peaks exceeding $100 per barrel recorded in March

Crude oil markets experienced substantial gains Monday following President Trump’s declaration that the United States would restore its Strait of Hormuz blockade while implementing a 20% levy on all cargo transiting the critical waterway.

Brent crude advanced approximately 4.7% to reach levels near $80 per barrel. WTI crude posted comparable gains of 4.6%, trading close to $75. Despite these increases, both oil benchmarks continue trading substantially below their conflict-driven peaks surpassing $100 per barrel, established in March during the initial stages of hostilities.

Trump proclaimed the United States would assume the role of “Guardian of the Strait of Hormuz” while asserting compensation is warranted for maintaining route security. “We can’t be expected to do that for nothing,” the president stated during a Fox News appearance.

“As a matter of fairness, the United States should be reimbursed at a rate of 20% on all cargo shipped for the expenses associated with ensuring safety and security in this highly volatile corridor,” Trump wrote in a social media statement.

BREAKING: President Trump says the US is reinstating its blockade of the Strait of Hormuz for Iranian ships and customers.

Trump says the US will now be known as "The Guardian of the Strait of Hormuz" and will be "reimbursed" at a rate of 20% on all cargo shipped.

It appears… pic.twitter.com/MtjidgWMMM

— The Kobeissi Letter (@KobeissiLetter) July 13, 2026

Military Operations Intensify

US armed forces executed attacks against approximately 140 targets during the weekend, according to confirmation from US Central Command. This expanded Washington’s three-day offensive to over 300 total targets, following an assault on the Cyprus-registered container vessel M/V GFS Galaxy.

Tehran responded with strikes targeting what Iranian officials characterized as American and coalition military installations throughout the Gulf region. The United Arab Emirates reported successfully intercepting Iranian projectiles and unmanned aircraft. Emergency alerts activated in Bahrain, while detonations were documented in Doha.

Iran’s Revolutionary Guard Corps announced the interception of two ships within the strait, alleging they utilized prohibited navigation routes. Iranian authorities subsequently declared the waterway closed “until further notice.”

Trump pronounced the peace accord defunct. Iranian officials stated the situation had “undoubtedly entered a crisis phase.”

Maritime Activity Collapses, Markets Monitor Developments

Vessel transits through the Strait of Hormuz declined 52% week-over-week throughout the weekend, based on data from intelligence provider Kpler. Certain ships are now conducting “dark” passages, deactivating positioning transponders to evade surveillance.

The strategic waterway handles approximately one-fifth of global crude oil supply. With worldwide petroleum stockpiles depleted following five months of armed conflict, and Chinese refining demand showing renewed growth, supply constraints are intensifying.

Behind-the-Scenes Diplomatic Efforts Persist

Iran’s Foreign Minister conducted discussions with his Omani equivalent in Muscat regarding secure transit arrangements through the strait. Omani officials indicated negotiations would advance through both political and technical channels.

Iran’s newly installed Supreme Leader Ayatollah Mojtaba Khamenei pledged to seek retribution for his father’s death—the former supreme leader who perished in February when the conflict commenced.

Tehran stated it would not honor ceasefire provisions if Washington continues military operations. The United States has stipulated Iran must ensure safe commercial shipping passage before comprehensive negotiations can proceed.

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