President Donald Trump revealed that the U.S. will extend its assistance to manage the traffic buildup in the Strait of Hormuz, a key waterway for oil transportation.
Trump, via a post on Truth Social on early Wednesday, said: “A big day for World Peace! Iran wants it to happen, they’ve had enough! Likewise, so has everyone else!”
The president also suggested that this move could lead to substantial financial gains, stating, “Big money will be made.” He hinted that Iran could start its reconstruction process, with the U.S. providing various supplies and ensuring a smooth transition.
This announcement comes on the heels of a turbulent period marked by threats of military action and fluctuating global markets. On Tuesday, Trump agreed to suspend military action against Iran for two weeks in exchange for restoring safe passage through the Strait of Hormuz. This decision caused a major shift in global markets, with Dow futures surging 848 points and oil markets tumbling by 13%.
At 3:38 am ET, Brent crude oil prices are trading 13.2% lower at $94.85 per barrel. However, the average gas price stayed above $4 per gallon, as per AAA.
Trump Hints At Hormuz ‘Tolls’
While it remains unclear what Trump means by “big money,” during his Monday press conference at the White House, when asked about charging “tolls” for shipping through the Strait of Hormuz, he answered in the positive.
“I’d rather do that than let them have them, right? Why shouldn’t we? We’re the winner. We won. Okay. They are militarily defeated,” said Trump.
Previously, Trump had also floated the idea that the Hormuz corridor would be jointly controlled by him and the new Ayatollah.
Earlier this month, it was reported that after a 90% drop in traffic through the Strait of Hormuz, Iran set up a tightly controlled shipping corridor near Larak Island, charging tolls starting at $1 per barrel of oil in yuan or stablecoins. Ships must pass strict IRGC vetting, proving no links to the U.S. or Israel, before receiving passage permits, effectively creating a “toll booth” system, which was reportedly approved by Iran’s lawmakers.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Image via Shutterstock
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