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President Trump declares US ‘Guardian of the Hormuz Strait’

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.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD0.07%0.17%0.37%-0.09%0.24%-0.21%0.32%
EUR-0.07%0.11%0.28%-0.16%0.16%-0.24%0.28%
GBP-0.17%-0.11%0.20%-0.27%0.09%-0.33%0.22%
JPY-0.37%-0.28%-0.20%-0.46%-0.13%-0.54%0.02%
CAD0.09%0.16%0.27%0.46%0.35%-0.05%0.49%
AUD-0.24%-0.16%-0.09%0.13%-0.35%-0.38%0.16%
NZD0.21%0.24%0.33%0.54%0.05%0.38%0.55%
CHF-0.32%-0.28%-0.22%-0.02%-0.49%-0.16%-0.55%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Agustin Wazne

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

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