Trump Imposes 20% Transit Tax on Hormuz Strait Shipments to Pressure Iran and Allies

US President Donald Trump has grown frustrated with the conflicting approaches within Iran's regime, particularly between the militant faction led by the Islamic Revolutionary Guard Corps (IRGC) and Supreme Leader Mojtaba Khamenei, and the moderate faction headed by President Ebrahim Raisi and Foreign Minister Abbas Araghchi. While the moderates seek to maintain a recent ceasefire agreement, the IRGC continues aggressive actions, including repeated attacks on oil tankers and cargo ships in the Strait of Hormuz, prompting US Central Command retaliations and further Iranian strikes on American bases in the Gulf.

In response, Trump has decided to impose a 20% transit tax on all cargo passing through the Strait of Hormuz, including Iranian ports on the Indian Ocean coast. This move aims to punish Iran and countries like NATO members and China that have refused to assist the US in pressuring Iran to open the strait. The tax is intended to cover the increased costs the US incurs providing naval and aerial escort for commercial shipping in the strategically vital southern route near Oman.

Discussions between US officials and IRGC representatives reportedly nearly reached an agreement on transit arrangements, but Iranian demands for changes led to a breakdown in talks, resulting in ongoing exchanges of attacks in the Gulf. The IRGC’s direct negotiations with the US may resume following Trump’s new measures.

This ongoing conflict, a war of attrition over control of the Strait of Hormuz, serves US interests by maintaining pressure on Iran and preventing the lifting of sanctions. Meanwhile, Iran appears focused on fortifying its nuclear facilities rather than resuming uranium enrichment, as satellite images show efforts to harden sites against potential future strikes from the US or Israel.

The militant Iranian faction views control of the strait as both an economic asset and a strategic lever to influence global oil markets and regional powers. Conversely, the US refuses to allow the IRGC to claim victory by gaining a lucrative economic and strategic advantage from their attacks, which Trump says were intended to subdue them but instead have led to this protracted confrontation.