Newsom says Strait of Hormuz is closed despite Trump claims

1 min read     Updated on 06 Aug 2026, 01:38 PM
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AI Summary

Governor Gavin Newsom asserts the Strait of Hormuz is closed, contradicting President Trump. UKMTO reports explosions near a tanker in the strait with no damage. Iran seeks 5-7% toll while Oman proposes 3%, as regional officials deny imminent deals.

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Governor Gavin Newsom (D-CA) has directly challenged President Donald Trump’s claims that a deal to reopen the Strait of Hormuz is imminent, asserting that the waterway remains closed. Newsom’s official press office handle on X shared an unverified TikTok video featuring an influencer in a boat next to a container ship, using it to highlight statements from shipping container captains that the strait is not operational. "Take it from shipping container captains … the strait is closed — despite what Trump claims every other day," the press office said on August 5, 2026.

Maritime Security Incidents

The United Kingdom Maritime Trade Operations Center (UKMTO) reported a security incident on Wednesday, August 6, 2026. The center received a late report from the master of a tanker who heard two explosions near the vessel while traveling through the Strait of Hormuz. The incident occurred approximately 10 miles southeast of Kumzar, Oman.

Incident Detail Description
Location 10 miles southeast of Kumzar, Oman
Event Two explosions heard near tanker
Status Crew and vessel safe; no environmental damage
Advisory Vessels advised to exercise caution

The UKMTO confirmed that the crew and vessel are safe and accounted for, with no environmental damage reported from the incident. The agency advised all vessels to exercise caution in the area.

Diplomatic and Toll Disputes

The conflicting statements emerge amid reports that Iranian officials are seeking a 5% to 7% toll on ships traveling through the waterway. Oman, conversely, reportedly wants to levy a 3% toll on the ships. Officials in the region have denied backing Trump’s claims about an imminent deal over Strait of Hormuz traffic.

President Trump recently called off strikes on Iran, a move hailed by his former counterterrorism chief, Joe Kent, as a possible pathway to reopening the strait. However, Iranian Foreign Ministry spokesperson Esmaeil Baqaei previously stated that any agreement reached with Oman on a new shipping route for vessels did not mean that the Strait of Hormuz would reopen.

How will the proposed 3-7% tolls by Iran and Oman impact global shipping costs and insurance premiums for vessels attempting to navigate the Strait?

What alternative maritime routes are major energy exporters likely to prioritize if the Strait of Hormuz remains effectively closed or highly contested?

Could the conflicting narratives between the White House and state-level officials like Governor Newsom create diplomatic friction that complicates US foreign policy negotiations with Iran?

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Iran seeks 5-7% Strait of Hormuz toll as Oman backs 3% rate

1 min read     Updated on 06 Aug 2026, 11:38 AM
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AI Summary

Iran seeks a 5-7% cargo value toll for Strait of Hormuz transit, whereas Oman supports a 3% rate. Diplomatic sources deny an imminent deal with the US, noting unresolved issues despite halted strikes and falling oil prices.

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Iran has reportedly demanded a transit fee of 5% to 7% of cargo value for ships passing through the Strait of Hormuz, while Oman supports a lower 3% rate, according to Reuters. Senior Iranian and regional officials stated that these proposals are part of ongoing negotiations, though they explicitly denied that a deal between Washington and Tehran is imminent. This development introduces specific financial parameters to the diplomatic standoff, complicating efforts to reopen the critical waterway which handles approximately 20 million barrels per day.

Divergent Toll Proposals

The proposed agreement between Oman and Iran would grant Tehran increased control over traffic entering the Gulf. Iranian Deputy Foreign Minister Kazem Gharibabadi told IRNA that ships would travel through "Iranian territorial waters, both on the inbound and outbound legs." While Iran insists on a 5% to 7% toll, Oman advocates for a 3% fee. Gharibabadi also noted that Iran has received indications the US is prepared to return to commitments under the Memorandum of Understanding (MoU) signed in June, though he emphasized this is a necessary but not sufficient condition for reopening.

Proposal: Toll Rate: Proponent:
High Rate 5% to 7% of cargo value Iran
Low Rate 3% of cargo value Oman

Market Reaction and Political Pushback

Oil prices declined following President Donald Trump’s announcement that the US would halt strikes on Iran to facilitate talks. Brent crude fell 0.38% to $79.15/bbl, and West Texas Intermediate (WTI) dropped 0.47% to $74.87/bbl. In the US, the national average gasoline price stood at $4.0801/gallon, while diesel averaged $5.3622/gallon, according to American Automobile Association data.

Political tensions remain high. Sen. Chuck Schumer criticized Trump, claiming the conflict benefits oil companies reporting massive profits. Trump countered by accusing oil firms of "making too much money." Despite these exchanges, officials cited by Reuters stressed that significant issues remain unresolved, pushing back against suggestions of an immediate resolution.

How might the proposed 3-7% transit tolls impact global shipping insurance premiums and logistics costs for energy traders?

What are the potential long-term implications for OPEC+ production quotas if the Strait of Hormuz remains partially restricted or subject to new fees?

Could Oman's mediation role and lower toll proposal shift regional geopolitical alliances away from Tehran toward Muscat?

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