US President Donald Trump on Tuesday, 14 July declared the Strait of Hormuz reopened for international shipping under US military protection, while simultaneously announcing a 'FULL Blockade' on all vessels bound for Iranian ports or carrying Iranian cargo. In the same statement, Trump scrapped a proposed 20 per cent reimbursement fee on Gulf states for US security services, replacing it with trade and investment commitments from Gulf nations into the United States.

Hormuz Reopened Under US Military Watch

Trump made the announcement via a post on Truth Social, crediting the US armed forces with restoring maritime traffic through one of the world's most critical energy corridors. 'Oil is flowing like never before, thanks to the awesome Power of the United States Military,' he wrote.

Trump specifically praised Secretary of War Pete Hegseth, Chairman of the Joint Chiefs of Staff Dan Caine, and Commander of the United States Central Command Admiral Brad Cooper for overseeing the operation. He described the strait as now open to 'ALL Ship traffic except for Iran.'

Full Blockade Announced on Iranian Maritime Trade

While declaring the strait open to the world, Trump drew a sharp distinction for Iran. 'We will therefore have a FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo,' he stated. The move effectively isolates Iranian maritime commerce while preserving passage for all other nations — a dual-track approach that significantly escalates economic pressure on Tehran.

This comes amid longstanding US-Iran tensions over Iran's nuclear programme, which Trump addressed directly, stating: 'IRAN WILL NEVER HAVE A NUCLEAR WEAPON.' He also accused Iran's leadership of pursuing a path of destruction, describing them as 'lying, violent, malicious leadership.' Trump further claimed that 52,000 protesters had been killed under Iran's current leadership — a figure that could not be independently verified at the time of publication.

Reimbursement Fee Dropped, Gulf Investment Deals Substituted

In a notable policy reversal, Trump confirmed he had abandoned an earlier proposal requiring Gulf states to reimburse the US at a rate of 20 per cent for providing security in the Strait of Hormuz. He said the decision followed 'highly productive conversations with Middle East leadership.'

'I have decided to replace the 20 per cent United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,' Trump wrote. He described the planned investments as 'MASSIVE' and predicted they would drive factory construction, equipment imports, and the creation of 'additional millions of High Paying AMERICAN Jobs.'

Strategic and Global Implications

The Strait of Hormuz is the world's most critical oil chokepoint, with roughly 20 per cent of global petroleum trade transiting its waters daily. Any disruption — or credible threat of disruption — sends immediate shockwaves through global energy markets. The US military's declared role as guarantor of passage marks a significant expansion of its operational posture in the Persian Gulf.

Notably, the simultaneous blockade of Iranian cargo creates a legally complex situation under international maritime law, and analysts are expected to scrutinise whether the measures constitute a formal naval blockade — which carries distinct obligations and risks under the United Nations Convention on the Law of the Sea (UNCLOS). The full diplomatic and market response from Iran, China — a major buyer of Iranian oil — and European partners remains to be seen in the hours and days ahead.