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Trump Proposes 20% Fee for US Protection in Strait of Hormuz

KVIA•Monday, July 13, 2026 at 6:54 PM•CNN Newsource

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AI Summary

In light of the ongoing US-Israeli conflict with Iran, President Donald Trump has proposed that the United States will offer protection to vessels navigating the Strait of Hormuz, but at a cost of 20% on the value of cargo. This proposal raises significant questions regarding its legality and practicality, as shipping companies typically pay only 2-3% in fees. Experts suggest that such a high fee could deter shippers from utilizing the service, and insurers may refuse coverage based on perceived security risks. The legality of the fee is also in question, as international law grants vessels free passage through this vital waterway, complicating the proposal's implementation.

Key Details: • Trump's proposal includes a 20% fee on cargo for US protection. • Shipping fees typically range from 2-3%, making Trump's fee potentially prohibitive. • Legal experts question the feasibility of imposing such a fee under international law. • Insurers may refuse coverage for vessels in the Strait due to high security risks.

trump shipping iran international-law maritime

People & Organizations

Donald TrumpStrait of HormuzJames KraskaXenetaJohn McCownBjorn Vang JensenCenter for Maritime StrategyUS Naval War College

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