President Donald Trump just turned the world’s most critical oil chokepoint into a toll road. The president announced a naval blockade against Iranian ships in the Strait of Hormuz, paired with a 20% toll on all cargo shipped by non-Iranian vessels through the passage.
Oil prices surged 5-7% in intraday trading almost immediately.
The toll booth at the edge of the world
About 20% of the world’s oil trade flows through the Strait of Hormuz. That narrow waterway between Iran and the Arabian Peninsula is essentially the jugular vein of global energy supply.
Trump framed the toll as a matter of “safety and fairness,” positioning the US as what he called “THE GUARDIAN OF THE HORMUZ STRAIT.” The toll is set to commence immediately, though no implementation details or legal justification for the charge were provided.
