President Donald Trump said the U.S. should control the Strait of Hormuz, a crucial passage through which around a fifth of global oil production typically flows, as renewed hostilities with Iran intensify.
“We are going to keep the Strait. We will probably run it,” Trump told Fox & Friends Monday during a phone interview. “We'll become the guardian of the Strait. Maybe we'll call it the ‘guardian angel’ of the Strait.” He added that the U.S. would ideally then be “reimbursed” for their guardianship of the waterway by “other" nations.
Soon after, Trump announced that the U.S. is reinstating its naval blockade against Iran and will charge 20% on all cargo shipped through the Strait to cover "any and all costs necessary to do the job of providing safety and security to this very volatile section of the world." The President's remarks came as oil prices soared by more than 3% Monday morning after the U.S. and Iran traded further strikes over the weekend.
Brent crude, the international benchmark, neared $80 per barrel, a significant rise from the same time last week, when it traded at $71.99.
Although prices remain well below the $126 peak reached in April, during the height of the war, the surge reflects the concerns over shipments transiting the Strait, which has a threat level of “severe” due to high volatility in the area.
