Donald Trump said the US will reinstate its naval blockade on Iran and charge ships a 20 per cent fee on cargo passing through the Strait of Hormuz.

The move comes after the U.S. and Iran exchanged fire for the third weekend in a row, raising the specter of a return to all-out war after a shaky ceasefire took effect in June.

WASHINGTON -- US President Donald Trump said Monday that the United States was reinstating a naval blockade on Iran in the Strait of Hormuz.