WTI and Brent crude have risen around 10% after President Donald Trump announced the U.S. will impose a 20% fee on all cargo passing through the Strait of Hormuz, declaring America the “guardian” of the key global oil shipping route.
“The U.S.A. will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,'” Trump said.
Funnily enough, this is a sharp reversal from the U.S. position on Iran’s previous proposal to charge tolls for vessels transiting the strait, which Secretary of State Marco Rubio argued would violate international law.
Stock indexes also fell, following Trump’s announcement.
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