BusinessJuly 14, 2026

How a 20% Toll at the Strait of Hormuz Could Raise Shipping Costs

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② Start Lesson

Key Vocabulary

blockade/ˈblɒk.eɪd/

When a country stops ships from entering or leaving an area.

"The blockade stopped ships from leaving the port."

fee/fiː/

A payment for a service.

"The company charged a small fee for delivery."

insurance/ɪnˈʃʊə.rəns/

A payment that protects against loss or damage.

"The ship had insurance for storm damage."

Listening

How a 20% Toll at the Strait of Hormuz Could Raise Shipping Costs

President Donald Trump said he will reinstate a U.S. blockade and charge a 20% fee on cargo that passes through the Strait of Hormuz. The fee is to pay for the cost of providing safety and security for ships. The Strait of Hormuz is a narrow waterway between Iran and Oman and it carries about 20% of the world’s oil.

Shippers and insurers worry that a 20% fee will raise costs for companies that move oil and other goods. Some logistics experts say the fee, together with higher war-risk insurance and rerouting, could more than double the cost of moving oil through the strait. Higher shipping costs can make fuel and everyday goods more expensive in many countries.

118 words

Quiz

1. Who said the U.S. will charge a 20% fee?

2. What percent fee will be charged on cargo?

3. Where is the fee applied?

Reading Practice

Read the article from the Listening section aloud. Your AI teacher will give you pronunciation feedback.

Discussion

Do you worry when you hear about higher shipping costs? How would that affect your daily life?

Have you ever bought something that became more expensive because of transport costs? What was it?

What do you think about paying extra fees for safety when you travel or buy goods?