3 articles · Updated · The New York Times · Jul 13
Summary
Trump formally told Congress that fighting with Iran has resumed, then reinstated a naval blockade and announced a 20% charge on all cargo moving through the Strait of Hormuz.
Three straight nights of U.S. strikes and recent tit-for-tat attacks with Iran unraveled the cease-fire Trump had promoted, which he later downplayed by saying such agreements “don’t mean much.”
The toll plan clashes with his own administration’s view that charging passage fees in the strait violates international law, even as Trump cast the levy as reimbursement for protecting Gulf shipping.
Oil prices jumped and stocks fell after the announcement, reviving pressure on Trump from Republicans already worried that a wider Iran war and higher energy costs could hurt midterm-election politics.
With the Strait of Hormuz closed, how will the world economy adapt to a prolonged global oil supply disruption?
Can the Federal Reserve tame a war-fueled inflation crisis without causing a severe economic downturn?
July 2026: The Strait of Hormuz Crisis and Its Global Economic and Humanitarian Fallout
Overview
The collapse of the fragile three-week-old ceasefire between the United States and Iran on July 7, 2026, marked a turning point in the crisis. President Trump declared the ceasefire over, and the US military quickly launched new strikes against Iran, sparking a renewed phase of direct military confrontation. Explosions were soon reported in several Iranian port cities, and neighboring countries like Kuwait and Bahrain responded by intercepting drones and activating warning sirens. These events led to a rapid deterioration of regional stability, highlighting the escalating tensions and the risk of broader conflict.