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Trump proposal for 20% Hormuz charge could raise energy costs
The Strait of Hormuz disruption has already pushed up oil and gas prices, increased insurance premiums, and prompted efforts to restore normal trade, according to OilPrice.
OilPrice says a proposed 20% charge on cargo passing through the Strait of Hormuz would likely undermine energy markets by turning a temporary disruption into a permanent structural cost. The outlet argues the charge would violate core principles of international navigation and could raise the price of shipping energy through one of the world’s most important energy corridors, with effects that extend beyond any stated goal of restoring stability.
OilPrice notes that disruption to the strait has already driven up oil and gas prices, increased insurance premiums, and forced governments to seek ways to reopen normal trade. It adds that after months of military and diplomatic activity aimed at preventing a regional conflict from escalating into a wider economic crisis, charging ships would risk replacing the prior risk of an Iranian blockade with an ongoing US toll that could be equally damaging to energy markets.