President Donald Trump declared the United States the "Guardian of the Hormuz Strait" and announced a 20% reimbursement fee on all cargo shipped through the waterway, framing the charge as compensation for American security operations [3][5][26]. The declaration, made via Truth Social and a Fox News interview, accompanied a reinstated naval blockade on Iranian ports and a third consecutive night of US strikes on Iranian military targets [1][5][6][32]. Trump told Reuters the US is "beating them up" and insisted the strait remains open [4].

Iranian Foreign Minister Abbas Araghchi rejected Trump's assertion, stating that "Iran has always been the GUARDIAN of the Strait and will remain so FOREVER" [3][17]. Araghchi agreed that whoever provides secure passage should be compensated but called 20% "too much" and said Iran would be "fair" [5][27]. Iran's top joint military command warned that it would not allow US interference in the strait's management and that any cooperation by Gulf states with Washington would be regarded as "an act of war against Iran's sovereignty" [26][33]. Iran's Persian Gulf Strait Authority declared the waterway closed, citing "recent illegal movements of the United States military forces" [4][10][13]. US Central Command (CENTCOM) and the Joint Maritime Information Centre (JMIC) contradicted Iran's closure claim, stating that commercial traffic continues to flow through an expanded southern route near Oman [4][5][31]. CENTCOM stated "Iran does not control the strait. Traffic is flowing" [31].

The International Maritime Organization (IMO) and its Council rejected the legal basis for any transit fee, stating there is "no legal basis through which to introduce mandatory tolls simply to transit through a strait" [3][10][21]. US Secretary of State Marco Rubio had previously insisted that "no country is allowed to charge tolls or fees on an international waterway" under existing international law [10][26][33]. Brazilian President Luiz Inacio Lula da Silva condemned the proposed toll as tantamount to piracy, stating the US cannot now behave as pirates after historically opposing the practice [18].

CENTCOM reported striking over 300 Iranian military targets across three nights, including sites at Bushehr, Bandar Abbas, and Abu Musa, stating the operations aimed to degrade Iran's ability to attack civilian mariners and commercial vessels [1][29][31]. The Islamic Revolutionary Guard Corps (IRGC) confirmed retaliatory strikes on US military facilities in Bahrain, Kuwait, Jordan, Oman, and Qatar, including weapons depots and a satellite communications center at al-Juffair Base in Bahrain [1][3][5][31]. The UAE Ministry of Defence reported that two of its tankers, Mombasa and Al Bahiyah, were hit by Iranian cruise missiles in Omani territorial waters, killing one Indian crew member and wounding eight others; The Indian Express, however, reported six others wounded [3][29][32][40]. Egypt, Iraq, the UAE, Bahrain, Qatar, and Jordan all condemned the Iranian strikes, with Egypt explicitly calling them a "flagrant violation" of sovereignty [4][6][28][31]. Bahrain's military accused Iran of targeting civilians with missiles and drones [6][37].

Iran's foreign ministry said US attacks had rendered futile all efforts to reduce tension [7][10]. UN Secretary-General Antonio Guterres expressed deep concern and warned that a return to full-scale hostilities would have "catastrophic consequences" [6][8][10]. Analysts including Dennis Ross and Hussein Ibish attributed the collapse of the June memorandum of understanding to a fundamental interpretive gap: Iran understood the agreement as granting it exclusive control over the strait, while the US assumed a reopened southern corridor through Omani waters [19][23]. Michael Horowitz, an Israeli geopolitical analyst, described Iran's actions as driven by security concerns and bargaining leverage rather than financial incentives [23]. Pierre Razoux of the Foundation for Strategic Research assessed that Iranian strikes were limited "signal strikes" intended as a negotiation tool [18]. Mohsen Rezaee, an advisor to Iran's Supreme Leader, stated that the Strait of Hormuz is "even more important than dozens of nuclear bombs" as a pillar of Iran's deterrence [23][38].

Brent crude oil prices surged 9.59% according to RFI, while World Oil reported a 9.4% rise, following Trump's announcement [18][43], with analysts estimating the 20% fee would add approximately $16 per barrel to oil shipped through the strait [42]. Citi analysts warned that the risk of military conflict had risen materially should the announcement be implemented [42], and energy analyst Saul Kavonic cautioned that oil could reach $100 per barrel if the conflict expands [43]. South Korea's KOSPI index fell nearly 9%, triggering its seventh circuit breaker of the year [44]. The World Bank found that global energy prices rose 24%, and UNCTAD warned of long-term "scarring" effects on development progress in Africa [21]. South Korea's Vice Minister of Trade, Industry and Energy, Moon Shin-hak, announced plans to reduce Middle Eastern oil dependency below 50% through diversification to the US, Australia, and Algeria [45].

Trump formally notified Congress that hostilities resumed on July 7, invoking authority to keep forces in combat for 60 days without congressional approval [1][32][46]. Senator Chuck Schumer stated that both chambers voted to remove forces and end the war [1]. Senator Adam Schiff criticized the framework agreement and argued that Iran has realized it possesses a kind of "atomic weapon" by being able to shut down the strait [20].

China's Foreign Ministry spokesperson Lin Jian called for the strait's security and free passage to be restored, stating China's willingness to communicate with relevant countries [39]. The International Transport Workers' Federation and shipping employers designated the Strait of Hormuz as a Warlike Operations Area, granting seafarers the right to refuse to sail and doubling compensation for death or disability [47]. Israeli defense officials expressed concern that Washington's focus on the strait is distracting from containing Iran's nuclear program [34]. An Iranian analytical outlet argued that prolonged deadlock over the strait benefits Israel by pushing Washington toward policies that further contain Iran [35]. Iranian diaspora reporting highlighted that fishermen and port workers in southern Iran face destroyed livelihoods from the closure [38].

Ship-tracking data showed crossings through the strait fell approximately 52% between July 10 and July 12, a figure attributed to Kpler by Al Jazeera [1] and to MarineTraffic by CNA [5]. Trump stated that a deal with Iran remains possible even as he vowed to continue strikes [14][29]. Iran's top negotiator Mohammad Bagher Ghalibaf declared that "the era of one-sided deals is OVER" [4][5][31].