Trump’s Hormuz Toll Could Upend Global Energy Trade
AI Summary
A proposed 20% tariff on cargo passing through the Strait of Hormuz by Donald Trump could violate international navigation principles and significantly disrupt global energy trade. This measure risks increasing energy costs and accelerating the global energy transition while exacerbating regional instability.
A proposed 20% charge on cargo passing through the Strait of Hormuz would violate the basic principles of international navigation, raise energy costs and undermine the stated purpose of restoring stability. It could also do more to accelerate the global energy transition than many conventional climate policies. Donald Trump’s proposal to charge ships 20% of the commercial value of cargo passing through the Strait of Hormuz is difficult to understand as an energy policy. The disruption of the strait has already driven up oil and gas prices,…