President Donald Trump said Monday that the United States would impose a 20% charge on cargo shipments using the Strait of Hormuz after a cease-fire with Iran collapsed amid a dispute over Tehran's efforts to retain control of the key waterway.
Iran shut down the 34 km (21 mile) wide strait that was the main route for a fifth of world oil supplies and other vital goods including fertilizers when the U.S. and Israel attacked it on Feb. 28, causing a global energy shock.
This is why it matters, how Trump's and Iran's stances differ, and how it affects the rest of the world:
Has U.S. shifted position on charging Hormuz fees?
As recently as June 25, U.S. Secretary of State Marco Rubio said when meeting Gulf states and in response to Iran's demand for fees that "no country on Earth has the right to charge for the use of international waterways" and that fees for shipping would never be part of any deal.
