MANILA, July 13 — The United States has announced a significant escalation in its economic pressure on Iran, with President Donald Trump ordering a naval blockade of Iranian shipping lanes and the imposition of a 20 percent toll on vessels transiting the Strait of Hormuz. This move, confirmed in a July 2025 announcement, represents an escalation beyond previous sanctions, directly targeting shipping through the strait rather than just Iranian exports. The new measures build on decades of American sanctions against Iran, which began after the 1979 hostage crisis.
The so-called “maximum pressure” campaign, however, traces its roots to May 2018, when President Trump — then in his first term — withdrew the United States from the Joint Comprehensive Plan of Action (JCPOA), the 2015 nuclear deal. That agreement, signed by Iran, the United States, China, Russia, France, the United Kingdom, Germany, and the European Union, had lifted sanctions in exchange for limits on Iran’s nuclear programme.
By withdrawing, Trump reimposed sanctions that had been removed under the deal, targeting Iran’s oil exports, banking sector, and shipping industry. The impact was swift. By November 2018, American measures had slashed Iran’s oil exports from about 2.5 million barrels per day to under 1 million barrels per day.
In 2019, the U.S. took the further step of designating Iran’s Islamic Revolutionary Guard Corps (IRGC) as a foreign terrorist organization, a move that tightened financial restrictions on the powerful military entity. For communities across Asia, particularly in countries heavily reliant on energy imports from the Persian Gulf, the blockade and toll represent a new layer of uncertainty.
The Strait of Hormuz, a narrow waterway between Iran and Oman, is a vital artery for crude oil and liquefied natural gas shipments to Japan, South Korea, India, China, and Southeast Asian nations. A 20 percent toll on shipping could raise transport costs for fuel and goods, with potential knock-on effects for families and businesses across the region.
Diplomatic efforts stall
The Biden administration, which took office in January 2021, initially sought to reverse course and rejoin the JCPOA. Negotiations to restore the nuclear deal began but had stalled by 2022, with both sides unable to agree on terms for sanctions relief and nuclear restrictions. Meanwhile, Iran’s nuclear programme continued to advance.
In 2024, Iran enriched uranium to 60 percent purity, a level that is close to weapons-grade material and well beyond the limits set by the original 2015 accord. The breakdown of diplomacy set the stage for the current escalation.
The July 2025 announcement by President Trump to restart the blockade and impose the 20 percent toll is not simply a continuation of earlier sanctions but a direct intervention in international shipping lanes. Unlike previous measures that sought to cut off Iranian oil revenues by penalizing buyers and insurers, this policy targets the transit route itself, potentially affecting all vessels passing through the strait regardless of their cargo origin.
What comes next
The Strait of Hormuz has been a flashpoint for decades. During the Iran-Iraq war in the 1980s, both sides attacked oil tankers, and Iran has periodically threatened to close the strait in response to Western pressure. The new American blockade raises the risk of direct confrontation between U.S. naval forces and the IRGC, which patrols the waterway and has previously seized commercial vessels.
For families across Asia, the immediate concern is price stability. Oil markets have historically reacted sharply to any disruption in the strait, and analysts expect that the toll and blockade could push up global crude prices.
Countries like the Philippines, Thailand, and Indonesia, which import a significant share of their energy needs, may face higher fuel costs that ripple through transportation and food prices. Closer to home, the impact could be felt at the petrol station and in the cost of daily goods. The coming weeks will show how shipping companies, insurers, and Asian governments respond.
Some nations may seek exemptions or alternative routes, though the strait remains the only practical passage for much of the region’s oil supply. For now, the situation is one to watch closely, as the intersection of nuclear ambition, economic warfare, and maritime geography touches the lives of millions far beyond Tehran and Washington.
