President Trump declared on July 13 that the US would act as the “guardian” of the Strait of Hormuz, announcing plans to charge a 20% toll on all cargo passing through the narrow waterway while simultaneously renewing a blockade against Iran. The problem: the US Strategic Petroleum Reserve is sitting at precariously low levels, plagued by equipment failures and leaks.
The toll booth at the end of the world
The Strait of Hormuz is roughly 21 miles wide at its narrowest point. It handles a massive share of the global oil trade, making it arguably the single most consequential bottleneck in the world economy.
Trump’s announcement, made via Truth Social and expanded upon during a Fox News interview, frames the toll as a “safety and security” measure. The 20% levy on all cargo transiting the strait would represent an extraordinary assertion of control over international shipping lanes.
Iran has rejected the US claims outright. Exchanges of fire and threats between the two nations continue, and diplomatic channels appear to be fraying rather than strengthening.
