Pirate Sam
Trump’s idea of charging ships 20% to pass through the Strait of Hormuz is a bad one. He should work to end the war instead
In the 1800s, the United States fought pirates in North Africa and the Caribbean. More recently, it helped stop Somali pirates. But now, under President Trump, the US itself is being accused of acting like a pirate. Why? Because Trump has suggested charging a 20% fee on all goods carried through the Strait of Hormuz. Brazil’s President Lula has even compared the idea to piracy.
Trump’s plan is both unfair and unrealistic. It is unfair because the US often says it protects peace and supports free trade. Until February, ships could pass safely through the Strait of Hormuz. Then fighting between the US and Iran made the area dangerous. Now Trump wants to charge ships for safe passage. That also makes Iran’s earlier demand to collect money from ships seem more acceptable.
The idea is also unrealistic. Shipping companies usually pay only 2-3% of the value of their goods to transport them. A 20% fee would be far too expensive. Iran even joked that 20% was too much and said it would charge less.
Even if Trump’s plan never happens, the world is already paying a price. Oil prices have risen by about 20% in just two weeks because the fighting has become more serious. In late June, more than 70 ships crossed the Strait of Hormuz in one day. Last Sunday, only 14 did. Oil is still moving, but no ships carrying liquefied natural gas (LNG) have passed through since Saturday. Gas supplies can become a problem quickly because countries cannot store large amounts for long.
If the Strait stays blocked, oil and gas prices could rise even more. Many countries have already used up much of their emergency fuel supplies over the past few months.
India is in a better position because it buys oil and gas from many different countries. That means it is less likely to face shortages, although it will still have to pay higher prices like everyone else.
The fighting between the US and Iran is hurting people around the world. Instead of firing missiles and dropping bombs, both countries should return to the negotiating table and work towards a peaceful solution.
Disclaimer
Views expressed above are the author’s own.