TLDR
- President Trump declared the US will enforce a new blockade at the Strait of Hormuz and impose a mandatory 20% fee on cargo transiting the waterway
- Brent crude prices surged approximately 4.7% to approach $80 per barrel; WTI increased 4.6% to around $75
- Maritime traffic through the strait plummeted 52% week-over-week, with many ships disabling tracking systems
- Tehran dismissed Trump’s statements and cautioned neighboring nations that assisting the US would constitute an act of war
- Despite recent gains, crude prices stay significantly below wartime peaks above $100 per barrel recorded in March
Global oil markets experienced significant upward momentum Monday following President Trump’s announcement that the United States would restore its naval blockade of the Strait of Hormuz while implementing a 20% levy on all commercial cargo passing through the strategic waterway.
Brent crude futures advanced approximately 4.7% to reach levels near $80 per barrel. West Texas Intermediate crude posted similar gains of 4.6%, trading around $75. Despite these increases, both oil benchmarks continue trading substantially below wartime peaks exceeding $100 per barrel that were established in March at the conflict’s onset.
In a Fox News interview, Trump announced the US would assume the role of “Guardian of the Strait of Hormuz” and emphasized the nation deserves compensation for securing the passage. “We can’t be expected to do that for nothing,” the president stated.
“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
US Central Command verified that American forces executed strikes against approximately 140 targets during weekend operations. This expanded Washington’s three-day military campaign to exceed 300 total targets, launched in response to an assault on the Cyprus-registered container vessel M/V GFS Galaxy.
Tehran responded with counterstrikes targeting what Iranian officials described as US and allied military installations throughout the Gulf region. The United Arab Emirates confirmed intercepting Iranian missiles and unmanned aerial vehicles. Alert systems activated in Bahrain, while blast reports emerged from Doha.
Iran’s Revolutionary Guard Corps announced the interception of two commercial vessels within the strait, alleging they utilized unauthorized navigation routes. Iranian authorities subsequently declared the waterway closed “until further notice.”
Trump proclaimed the peace accord terminated. Iranian officials stated the situation had “undoubtedly entered a crisis phase.”
Shipping Drops, Markets Watch
Maritime traffic through the Strait of Hormuz declined 52% on a week-over-week basis during the weekend period, based on data from intelligence firm Kpler. Multiple vessels are now conducting “dark” transits, deactivating their automatic identification systems to evade detection.
The strategic waterway handles approximately one-fifth of global crude oil supply. With worldwide petroleum inventories depleted following five months of ongoing hostilities, and Chinese refinery demand showing renewed growth, supply constraints are intensifying.
Diplomacy Continues in the Background
Iran’s top diplomat conducted meetings with his Omani counterpart in Muscat to address secure navigation through the contested strait. Omani officials indicated discussions would proceed at both political and technical levels.
Iran’s newly appointed Supreme Leader Ayatollah Mojtaba Khamenei pledged to seek retribution for his father’s death, the former supreme leader who was killed in February when hostilities commenced.
Iranian officials declared they would not comply with ceasefire provisions while US military operations persist. Washington has stipulated that Iran must guarantee unimpeded commercial shipping access before comprehensive negotiations can recommence.
