Trump's Strait of Hormuz fee could hike oil by US$16

WASHINGTON - The White House's plan to impose a 20 per cent fee on cargo transiting via the Strait of Hormuz could increase the price of a barrel of oil by about US$16 according to an assessment by the Lipow Oil Associates consulting firm.

The planned levy is also expected to raise a risk of supply disruptions, the report said on Monday.

On Monday, US President Donald Trump said the United States would become a "guardian" of the Strait of Hormuz and receive a reimbursement equal to 20 per cent of cargo shipped through the waterway.

He also said the United States was reinstating the blockade of Iranian ports.

Tehran and Washington signed a memorandum on the night of June 18, which envisaged an end to the conflict that began on February 28. However, on the night of July 8, the United States resumed strikes.

According to Trump, this was a reaction to Iran's actions against commercial vessels in the Strait of Hormuz. He threatened to increase the intensity of the attacks if such a situation were to recur.

In response, Iran is launching strikes against US military infrastructure in West Asia. - BERNAMA