Brazilian President Luiz InĂĄcio Lula da Silva on Tuesday criticised US President Donald Trump‘s proposal to impose a 20 per cent charge on commercial ships transiting the Strait of Hormuz, mocking Washington as a „pirate“ state.
His remarks came after Trump announced that the US would reinstate what he called the „Iranian blockade“ and begin charging vessels for securing one of the world‘s busiest shipping lanes.
The strait was open before the US and Israel joined forces to wage war on Iran, only to have that nation slam it shut. Some vessels got through during the ceasefire, with Iran charging $3 million for a fully loaded supertanker to transit the strait.
Trumpâs threatened toll would jack that cost up to $69 million.
Around one-fifth of global oil supplies and large volumes of liquefied natural gas move through the narrow waterway, making it one of the world‘s most important maritime chokepoints. Any disruption can quickly affect fuel prices, shipping costs and inflation worldwide.
The Strait of Hormuz is a narrow passage with global consequences. A proposed U.S. toll would mark a sharp escalation after recent strikes and a fragile interim deal with Iran.
U.S. stocks fell after President Donald Trump announced plans to resume a naval blockade against Iran and impose tolls on vessels transiting the Strait of Hormuz.
On the 13th, the Dow Jones Industrial Average closed at 52,498.64 in New York, down 138.37 points, or 0.26%, from the previous session.
President Donald Trump on Monday said the U.S. will impose fees in the Strait of Hormuz âat the rate of 20% on all cargo shipped,â after declaring America the âguardianâ of the major oil shipping route.
President Trump announced on Monday that the U.S. is reinstating the naval blockade on Iran and will prevent any ships from leaving or entering Iranian ports. The blockade will go into effect on July 14 at 4pm ET.
Trump also claimed the U.S. would be „reimbursed“ at a rate of 20% for securing safe passage for cargo ships, though the details and seriousness of the initiative were not immediately clear.