President Donald Trump is taking a harder line against Iran now that his ceasefire memorandum has fallen apart — but economic observers worry his new approach to guarding the Strait of Hormuz is actually going to make things worse.
This week, Trump announced that the United States will patrol the Strait, a critical shipping lane for 20 percent of the world's oil, to stop Iranian aggression, and demanded vessels in the area pay what amounts to a $15 per barrel toll to the U.S. for that protection.
That demand is likely to cause serious economic problems, CNBC reported, as it would raise global energy prices just the same as if transit through the Strait were still interrupted.
According to the report, international shipping firm Hapag-Lloyd is protesting the new proposed fee, saying, “Tolls for infrastructure such as the Suez Canal or Panama Canal are different, because they reflect major infrastructure investments. That is not the case in the Strait of Hormuz.”
Meanwhile, Iran itself, which had demanded its own toll as a buy-off to allow safe passage, mocked Trump's announcement, with Iranian Foreign Minister Abbas Araghchi posting to social media, “Iran has always been the GUARDIAN of the Strait and will remain so FOREVER. 20% is of course too much. We will be fair."
Trump's ceasefire agreement was in place for several weeks and was initially billed as the start of a permanent peace deal. However, it swiftly fell apart as Iran continued to make aggressive moves on civilian vessels and the United States retaliated with strikes on Iranian targets.