Trump says US will blockade Iran and demands payment for managing Strait of Hormuz

In brief

Iran's guards say they have targeted US facilities in region.

The US says it hit air defences, coastal radars, small boats.

President Donald Trump said on Monday the United States was reinstating its blockade of Iranian shipping in the Gulf and would ensure the Strait of Hormuz stays open — for a fee — after the two sides exchanged more missile and drone attacks.

The latest hostilities followed Iran's announcement at the weekend that it was closing the vital waterway, casting further doubt on an interim deal to halt the war and driving oil prices higher.

"The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating THE IRANIAN BLOCKADE," Trump said on Truth Social.

"The USA 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."

Iran's top joint military command said the US had no role in determining the future of Hormuz and would not be allowed to intervene. Iranian Foreign Minister Abbas Araqchi wrote on X that his country was the guardian of the strait and would remain so "forever", adding in response to Trump's comments that: "20% is of course too much. We will be fair."

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The UN's shipping agency pushed back against Trump's proposal, saying it opposes any fees for straits used in international navigation and stressing that there is no legal basis for introducing mandatory tolls on strait transits.

Trump has previously suggested the US could charge tolls on shipping through the strait, but it has so far not done so and it was unclear if it would follow through on Trump's declaration this time.

The US Navy-led Joint Maritime Information Center said the blockade would take effect at 2000 GMT on Tuesday and apply to all vessel traffic regardless of flag, covering the entire Iranian coastline including ports and oil terminals.

It said the measure would not impede neutral transit passage through the strait to or from non-Iranian destinations, and that humanitarian shipments would be permitted subject to inspection.

Before the conflict began in February, around a fifth of the world's oil and gas traffic passed through Hormuz daily, delivering more than 15 million barrels of fuel to global markets worth at least US$1.2 billion ($1.73 billion). If the US were to impose a 20% fee, it could generate around US$250 million a day ($361.5 million).

Iran has sought to establish a permanent fee and permit system of its own for vessels using the waterway.

Both sides carry out more strikes

Trump said the United States would again strike Iran "hard," as the military launched a fresh salvo of attacks for the third night in a row and reimposed a blockade on Iranian ports.

"We're going to hit them very hard tonight, and we're going to hit them hard tomorrow," Trump said at the White House on Monday.

Shortly after, US Central Command (CENTCOM) said strikes had begun at 2045 GMT, adding that they would "continue imposing a heavy cost on Iranian forces and degrade their ability to attack innocent civilians and commercial shipping in the Strait of Hormuz".

Thousands of people have been killed in the war, mainly in Iran and Lebanon.

Iranian state media reported deaths in the latest US strikes, which it said targeted large areas across the south and west.

At least four explosions were heard Monday east of Bandar Abbas, which sits on the Strait of Hormuz, Iranian state media reported, citing a reporter in the port city's province.

At least 25 people have been killed in Iran since hostilities resumed on Wednesday, according to an AFP tally based on Iranian announcements.

United Nations Secretary-General Antonio Guterres on Monday expressed "deep concern" at the regional escalation, including attacks by both sides.

Iran's Revolutionary Guards said they had struck US military targets and bases in Jordan, Bahrain and Kuwait, state media reported.

Air raid alerts sounded in Bahrain, where the military said it shot down a number of Iranian projectiles, while Kuwait's army said its forces were intercepting "hostile aerial targets".

Jordan's army said it had intercepted four Iranian missiles.

Iran insists it only targets US interests in the Gulf, but the spokesman for its military command said any collaboration by Gulf countries with the United States would be considered "an act of war".

The latest exchanges mark an escalation over the past week, throwing into question the interim US-Iran agreement signed last month to reopen the strait and halt hostilities.

Trump has said he considers the ceasefire over, while leaving the door open to further talks.

"We had a deal. It was a done deal, and then they broke it. They always break it," he said in a phone interview with Fox News on Monday. "And so we're just going to hit them very hard."

Iran's top negotiator, Mohammad Baqer Qalibaf, struck a similarly forceful tone on X on Sunday: "The era of one-sided deals is OVER. We told you: keep your word or pay the price."

The war launched by the United States and Israel against Iran on February 28 has destabilised the Gulf and spread across the region, with Iran attacking US bases in multiple countries.

Yemen's Houthi movement fired missiles at Saudi Arabia after accusing the kingdom of bombing an airport under its control on Monday, breaking a four-year truce between Riyadh and the Iran-aligned group.

Oil prices jump

Driven by fears of further disruption in the strait, oil prices jumped more than 9% on Monday, with Brent futures posting their biggest single-day dollar gain since 2 April, and highest settlement since 12 June. US crude futures made their largest daily gain since 29 April to settle at their highest since 15 June.

Higher energy prices, particularly gasoline costs, are politically sensitive for Trump before congressional elections in November.

Iran's Revolutionary Guards said in a statement on Monday that the only way to restore regular shipping traffic was to end US military interventions in the waterway.

The US, which revoked a licence waiving sanctions on Iranian crude sales last week after earlier attacks on shipping, said its forces were positioned to safeguard freedom of navigation.

US officials said around 20 vessels had been escorted through the strait in the previous 24 hours, although ship-tracking data showed little traffic moving. MarineTraffic said on Monday that vessel activity through the strait declined by about 52% over 10 July to 12 compared to the previous week.

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