Donald Trump has claimed the US will impose a 20% fee on "all cargo shipped", upon announcing the Iranian blockade by the US has been reinstated. The US President took to his social media platform Truth Social to announce the tax, which he said would cover the costs of "safety and security" along the vital waterway.

He wrote: "The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving.

"All other countries will have fair and open use of the Strait. The U.S.A. will be, from this point forward, known as 'THE GUARDIAN OF THE HORMUZ STRAIT,' but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.

"The process and formation will begin immediately. Thank you for your attention to this matter! President DONALD J. TRUMP."

Mr Trump did not explain exactly what the safety and security would look like, nor how Washington expects to implement the policy.

He earlier teased such a move in an interview with Fox News, saying, "We're taking over the Strait.

Iran's Islamic Revolutionary Guard Corps responded to these comments, claiming the waterway as "our territory" and stressing that it would not allow any country to "continue its illegal interference in it".

A spokesperson said the armed forces would "deal decisively with any disruption or insecurity to the passage of commercial and oil tankers... outside of the designated routes of Iran and without the permission of the armed forces".

They warned: "If the war expands in the region, the flames of war will engulf all countries in the region."