United States (US) President Donald Trump announced that the Strait of Hormuz is open and will remain accessible to international shipping “with or without Iran,” while outlining a new US-led security arrangement for the strategic waterway.

In a Truth Social post on Monday, Trump said Washington would reinstate what he called the “Iranian Blockade,” aimed at preventing Iranian vessels and Iran-linked customers from entering or leaving through the Strait. Ships belonging to other countries would continue to have what Trump described as fair and open access.

Trump also declared that the United States would be known as the “Guardian of the Hormuz Strait,” assuming responsibility for providing safety and security across the volatile maritime route.

Under the proposed arrangement, Washington would seek reimbursement “at the rate of 20% on all cargo shipped” through the Strait to cover the costs of protecting maritime traffic. Trump did not provide further details on how the charge would be calculated or implemented. “The process and formation will begin immediately,” Trump said.

Market reaction

The US Dollar Index (DXY) trades near 101.10, rising around 0.11% and moving slightly higher after surrendering earlier gains. The Greenback initially benefited from safe-haven demand as renewed US-Iran tensions pushed Oil prices higher.