Washington: US President Donald Trump has given a big statement regarding the Strait of Hormuz, saying that America will take responsibility for the security of this strategic sea route. He moreover said that to withstand the forfeit of this security arrangement, 20 percent duty will be charged on the cargo passing through this route. This statement of Trump has started a new debate regarding the once tense situation in West Asia.
What did Trump say?
During a conversation on an American TV programme, Trump personal that America will now play a major role in the security of the Strait of Hormuz. He said that this sea route is very important for global trade and energy supply, hence it is important to ensure its security.
He moreover said that America has been fulfilling the responsibility of maintaining security in this region for a long time and now the expenses incurred on this mission will be compensated by other countries.
Why the proposal to impose 20% duty?
Trump moreover responded to the issue on his social media platform and said that whatever cargo passes through this sea route, a 20 percent fee will be charged for security arrangements. According to him, this step is stuff taken with the aim of safeguarding international maritime trade.
However, no official information has been revealed yet regarding the way to implement this proposal and its legal process.
Why did the dispute increase regarding the Strait of Hormuz?
The Strait of Hormuz is one of the world's most important maritime trade routes. A large part of the transplanted oil and natural gas originating from the Gulf region reaches international markets through this route.
For this reason, America and Iran have been raising variegated claims and strategies regarding this waterway for a long time. The region has then wilt a centre of global tension pursuit attacks on ships and military whoopee in recent days.
Why have recent incidents increased concern?
Attacks on ships passing through Hormuz in recent weeks and subsequent military retaliation between the US and Iran have remoter aggravated the situation. The effect of increasing tension between the two countries was moreover seen on the international oil market, where sharp fluctuations were recorded in the prices of transplanted oil.
Can a solution sally through talks?
Amidst the tension, there is still a possibility of talks between the two countries. However, the situation still remains uncertain due to the strict statements stuff made by both sides. The international polity is now keeping an eye on how successful diplomatic efforts are in reducing tensions.
What will be the impact on the global market?
If tensions in the Strait of Hormuz protract for a long time, it could impact global oil supplies, shipping financing and energy markets. This minutiae is moreover considered important for oil importing countries like India, considering changes in international transplanted oil prices can moreover stupefy the domestic fuel market.
