Just when the war with Iran looked like coming to a conclusion, tensions have once again escalated with a resumption of airstrikes.

Iran has made the decision to close the Strait of Hormuz, where a fifth of oil exports pass through. The Islamic regime has also attacked Arab states friendly with America. 

It appears the MOU signed between the United States and Iran to put a halt to the fighting is no longer in effect.

Iran’s Islamic Revolutionary Guard Corps Navy said no vessels would be allowed to pass through the strait until U.S. interference in the area ends. It also warned that a new attack or violation would be met with a forceful response, including strikes on enemy bases in the region.

But President Donald Trump has rejected  Iran’s declaration that the Strait of Hormuz is closed and insists it remains open and is monitored by the United States.

U.S. Central Command put out a statement which read: “ The Strait of Hormuz is open to all vessels seeking to lawfully transit the international waterway. U.S. forces are positioned and prepared to ensure the freedom of navigation remains available despite unwarranted  Iranian aggression, harassment, threats and arbitrary declarations. Iran does not control the Strait. Traffic is flowing.”

With a resumption of hostilities and uncertainty around the Strait of Hormuz, oil prices have jumped by 9 per cent to US$80 a barrel.

President Trump has declared that the United States will be reinstating a blockade on Iran and will charge ships for safe passage. The blockade will begin today at 4 p.m. EDT.

A levy of 20 per cent of the value of commercial ships’ cargo will now be imposed by the United States.

The International Maritime Organisation (IMO) has said that America’s imposition of fees on ships passing through the Strait is wrong.

“We have always been consistent on our stance on fees- IMO stands firmly against charging fees for passage through straits used for international navigation.

“There is no legal basis through which to introduce mandatory tolls simply to transit through a strait,” read an issued statement.

Iran’s Foreign Minister Abbas Araghchi’s riposte read: “POTUS is absolutely right. Whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service. Iran has always been the guardian of the Strait and will remain so forever. Twenty per cent is, of course, too much. We will be fair. “