US President Donald Trump on Monday, 14 July declared that the United States would henceforth serve as the 'Guardian of the Hormuz Strait' — and that nations transiting the strategic waterway would be required to reimburse Washington at a rate of 20% on all cargo shipped as payment for American security provision. The announcement, made via Trump's Truth Social platform, also reinstated what he termed the 'Iranian blockade', barring Iran and its trading partners from using the passage while allowing all other nations free and open access.

What Trump Announced

In his Truth Social post, Trump wrote: 'The U.S.A. will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’ but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.'

He added that 'the process and formation will begin immediately,' signalling an intent to operationalise the arrangement without delay. Hours before the post, Trump had previewed the move in a Fox News interview, saying the US would 'become the guardian of the strait' and should be reimbursed because 'the other nations are very wealthy, they're on our side, and we can't be expected to do that for nothing.'

The Iranian Blockade Claim

Trump declared the Strait of Hormuz would remain open 'with or without Iran,' framing the blockade as targeted exclusively at Iranian vessels and their customers. 'All other countries will have fair and open use of the Strait,' he said. He also alleged that Iran had reneged on a recently negotiated agreement: 'We had a deal. It was a done deal, and then they broke it. They always break it. We've had 10 deals with these people, and so we're just going to hit them very hard.'

Trump further claimed Iran's military capacity had been severely degraded, asserting: 'They have no navy, they have no air force, it's all gone. Their anti-aircraft is gone. Their leaders have all been killed.' He credited recent US military action with preventing Tehran from acquiring a nuclear weapon.

Decades of Uncompensated Guarding, Trump Argues

Central to Trump's justification was the claim that the US had protected Hormuz shipping lanes for more than 50 years without financial compensation. 'We guarded the strait for 50 years, more, and we never got paid for it... now we're going to guard it, and we're going to get paid for guarding it, a lot of money,' he said. The argument mirrors his broader 'America First' framing — that US security commitments to allies and global trade routes must come with a financial return.

Key Questions Left Unanswered

Trump's announcement left critical implementation details unaddressed. It did not explain how the proposed 20% levy would be collected, whether it would apply uniformly to all commercial cargo transiting the Strait, or under what legal or international framework such a system would operate. The White House did not immediately release further details on enforcement or implementation mechanisms.

Notably, the Strait of Hormuz is one of the world's most consequential energy chokepoints — roughly 20% of global oil supply passes through it — making any shift in its governance arrangements a matter of acute concern for energy-importing nations, including India, Japan, South Korea, and European states. How those countries respond to the proposed levy, and whether Washington has the legal authority to impose it under international maritime law, remains to be seen.