Oil Prices Surge as Trump Reinstates Hormuz Blockade and Demands 20% Fee on All Cargo

TLDR

• Trump announced the US will reimpose its blockade of the Strait of Hormuz and charge a 20% fee on all cargo shipped through it
• Brent crude jumped roughly 4.7% to near $80 per barrel; WTI rose 4.6% to near $75
• Ship voyages through Hormuz fell 52% week on week, with vessels going “dark” to avoid tracking
• Iran rejected Trump’s remarks and warned regional countries that cooperating with the US would be an act of war
• Oil prices remain well below their wartime highs of over $100 per barrel set in March

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Oil prices climbed sharply on Monday after President Trump said the US would reinstate its blockade of the Strait of Hormuz and charge a 20% fee on all cargo moving through the waterway.

Brent crude rose roughly 4.7% to trade near $80 per barrel. WTI crude gained a similar 4.6% to trade near $75. Both benchmarks remain well below their wartime highs of over $100 per barrel, reached in March when the conflict first began.

Trump declared the US would serve as “Guardian of the Strait of Hormuz” and said it should be paid for keeping the route safe. “We can’t be expected to do that for nothing,” he said in a Fox News interview.

“As a matter of fairness, the United States should be reimbursed at a rate of 20% on all cargo shipped for the expenses associated with ensuring safety and security in this highly volatile corridor,” Trump said in a social media post.

BREAKING: President Trump says the US is reinstating its blockade of the Strait of Hormuz for Iranian ships and customers.

Trump says the US will now be known as “The Guardian of the Strait of Hormuz” and will be “reimbursed” at a rate of 20% on all cargo shipped.

It appears… pic.twitter.com/MtjidgWMMM

— The Kobeissi Letter (@KobeissiLetter) July 13, 2026

Escalation on Both Sides

The US military carried out strikes on roughly 140 targets over the weekend, US Central Command confirmed. That brought Washington’s three-day campaign to more than 300 targets in total, following an attack on the Cyprus-flagged container ship M/V GFS Galaxy.

Iran retaliated by striking what it said were US and allied military facilities across the Gulf. The UAE said it intercepted Iranian missiles and drones. Warning sirens sounded in Bahrain, and explosions were reported in Doha.

Iran’s Revolutionary Guard Corps said it intercepted two vessels in the strait it described as using unauthorized routes. Iran also declared the strait closed “until further notice.”

Trump called the peace agreement dead. Iran said it had “undoubtedly entered a crisis phase.”

Shipping Drops, Markets Watch

Ship voyages through the Strait of Hormuz fell 52% week on week over the weekend, according to intelligence firm Kpler. Some vessels are now attempting “dark” crossings, turning off location beacons to avoid being tracked.

The strait carries roughly one-fifth of the world’s crude oil supply. With global oil inventories drawn down after five months of conflict, and Chinese refinery imports ticking back up, supply pressure is growing.

Diplomacy Continues in the Background

Iran’s Foreign Minister met with his Omani counterpart in Muscat to discuss safe passage through the strait. Oman said talks would continue at both political and technical levels.

Iran’s new Supreme Leader Ayatollah Mojtaba Khamenei vowed to pursue retaliation for the killing of his father, the previous supreme leader, who died in February when the conflict began.

Iran said it won’t abide by ceasefire terms if the US continues its military campaign. Washington has demanded Iran guarantee safe shipping passage before broader talks can resume.