US-Iran Escalation: Naval Blockade, Strikes, and Hormuz Toll Dispute

In mid-July 2026, US President Donald Trump announced the reimposition of a naval blockade on Iran, covering all of Iran's ports, oil terminals, and coastal areas, and applying to all vessel traffic regardless of flag. The blockade marked a sharp escalation in the months-long standoff between Washington and Tehran following a February conflict that had killed thousands across the region.

Trump proposed a 20% toll or tariff on all cargoes and vessels transiting the Strait of Hormuz, framing it as reimbursement for US security provision in the critical waterway. The proposal, which drew immediate international attention, would have applied to all commercial shipping passing through the strait, through which roughly a fifth of global oil supplies transit.

The conflict's origins trace to February 2026, when the war began with the assassination of Iran's then supreme leader Ayatollah Ali Khamenei in US-Israeli airstrikes. The fighting has since spread across the region, with Iran attacking US military bases in multiple countries. An interim ceasefire — a memorandum of understanding setting out a 60-day negotiation period toward a permanent end to the war — has largely collapsed, with the two sides making little progress on key issues including control of the strait, Iran's nuclear programme, and broader regional matters. The countries were roughly halfway through the 60-day window as the latest escalation unfolded.

Iran had closed the Strait of Hormuz during the earlier phase of the war, prompting the US to impose a naval blockade on Iranian ships. The subsequent memorandum of understanding was supposed to reopen the strait and included Iran's commitment to safe passage of commercial vessels at no charge, billions in promised investment in Iran, and an end to international sanctions. Both the US and Iran claimed the agreement as a victory for their side, but the intentionally vague terms left key disputes unresolved.

Trump retracted the 20% Strait of Hormuz toll proposal approximately five hours before it was due to take effect. Citing productive conversations with Middle East leadership, he instead offered trade and investment deals with Gulf allies in exchange for guaranteeing safe passage through the waterway. The reversal came after the toll had drawn criticism from international maritime authorities and regional partners.

Center-left outlets highlighted that Trump's proposed 20% Hormuz toll contradicted the administration's own stated policy position: Secretary of State Marco Rubio had recently declared that no country is allowed to charge tolls or fees on an international waterway under existing international law. The same sources reported that Trump suggested the US should be known as the 'Guardian of the Strait of Hormuz,' stated the US would 'probably run it,' and said the US should be reimbursed for controlling the waterway.

The US launched multiple consecutive nights of military strikes against Iran targeting air defence systems, coastal radar sites, missile and drone capabilities, small boats, and port cities including Bushehr and Bandar Abbas. Center-left outlets reported these operations began in the days leading up to the blockade announcement and continued through mid-July.

Iran's Islamic Revolutionary Guard Corps conducted retaliatory strikes targeting US military facilities in Bahrain, Kuwait, Jordan's Prince Hassan airbase, and Qatar, and claimed to have destroyed radar systems in Oman. Iranian forces also attacked two UAE-associated tankers in the Strait of Hormuz. These operations were reported by center-left sources covering the escalation.

Oil prices rose sharply in response to the blockade and escalation. Center-left outlets reported varying figures for the increase: one account described Brent crude rising more than 3% on Monday, while another reported a nearly 10% single-day jump on Monday — the biggest one-day increase in six years — with crude reaching a four-week high above $86 a barrel on Tuesday. These prices remained below the war-period peak of nearly $120 per barrel.

The Guardian reported that the US Joint Maritime Information Center announced blockade enforcement would begin on Tuesday, 14 July 2026 at 20:00 GMT, with non-compliant vessels subject to interception, diversion, capture, and the use of force. The announcement specified that neutral transit to or from non-Iranian destinations would not be impeded.

The Guardian reported that the US military stated its strikes were intended to degrade Iran's ability to attack commercial shipping, while Iran's IRGC stated its strikes were conducted in response to American attacks against Iran. The same outlet reported that Trump promised at least two more rounds of strikes on Iran, telling radio host Hugh Hewitt the US would 'hit them very hard tonight and hit them hard tomorrow,' and said Iran had 'nothing going, other than they have big mouths.'

The Guardian reported that Bahrain, Kuwait, and Jordan each reported intercepting Iranian projectiles or missiles, with Bahrain accusing Iran of targeting civilians after explosions were heard in Manama. According to an Agence France-Presse tally cited by the same outlet, US attacks on Iran killed at least 28 people since the previous week, while one Indian seafarer was killed and ten others were seriously wounded by Iranian attacks on two tankers.

The Guardian reported that thousands of people have been killed in the conflict, mainly in Iran and Lebanon, though no specific breakdown of casualties by country or party was provided.

The Guardian reported that India's foreign ministry lodged a strong protest with Iran and summoned its deputy ambassador following Iranian attacks that killed one Indian seafarer and seriously wounded ten others on two tankers. The same outlet reported that the EU Aviation Safety Agency issued a warning for airlines on Tuesday to avoid flying over the airspace of Bahrain, Kuwait, Qatar, the UAE, and above the Gulf of Oman, citing unpredictable military developments.

The Guardian reported that the International Maritime Organization stated it stands firmly against charging fees for passage through straits used for international navigation and that there is no legal basis for mandatory tolls on strait transit. The organization said it was awaiting more information about Trump's proposal.

The Guardian reported that Iran's IRGC accused the US of endangering global oil and gas supplies and warned that any US moves in the strait would be 'strongly contested.' IRGC spokesperson Hossein Mohebi said Washington 'must be held accountable.' The same outlet reported that Iran's Foreign Minister Abbas Araghchi responded to Trump's toll proposal by saying '20% is of course too much. We will be fair,' and asserted Tehran would be the guardian of the strait 'for ever.'

The Guardian reported that UN Secretary-General António Guterres warned that a return to full-scale hostilities would have 'catastrophic consequences.' The same outlet reported that Iran's top negotiator Mohammad Bagher Ghalibaf posted on social media: 'The era of one-sided deals is OVER. We told you: keep your word or pay the price. Reality is knocking.'

The United States and Iran advanced directly contradictory claims about who has authority over the Strait of Hormuz. Iran's IRGC and foreign ministry both asserted Iran's sovereignty and management over the strait, while the US asserted it would take control and act as guardian of the waterway. Outlets across the political spectrum — including center-left sources The Guardian and BBC News, and center-right Israeli outlet Ynet News — all confirmed that both actors made these opposing claims.