U.S. Navy warships pass through the Arabian Sea in tight formation, June 30, 2026, as CENTCOM forces continue to promote regional security and stability.
Source: U.S. Navy
Hello, this is Leonie Kidd from London.
President Trump’s demand that traffic passing through the Strait of Hormuz pay a 20% toll in return for protection shocked the international community.
This marks a new development in the conflict with Iran and has once again spooked investors after the ceasefire effectively collapsed.
What you need to know today
That’s a harsh reality for the oil market, which is climbing again after posting its biggest one-day jump on Monday since the coronavirus era.
The move was prompted by President Donald Trump’s decision to reinstate the naval blockade in the Strait of Hormuz.
He argued to Truth Social that “the United States will henceforth be known as the ‘Guardian of the Strait of Hormuz.'” “But because of that, and as a matter of fairness, any costs necessary to carry out the work that provides safety and security in this highly volatile region of the world will be reimbursed at a rate of 20% of all cargo shipped.”
“The process and formation will begin immediately,” he added.
This move caused concern throughout the international community. The United Nations Maritime Organization said on Monday that there was “no legal basis for introducing mandatory tolls,” while Herbjörn Hansson, CEO of Nordic American Tankers, said in an interview on CNBC that he considered President Trump’s 20% toll unrealistic: “Iran is suffering, the United States is suffering, and so are the 192 countries outside the Strait of Hormuz.”
A new wave of attacks
U.S. Central Command announced it had completed another five-hour mission hitting targets across Iran. It was the third consecutive night of attacks in retaliation for attacks on merchant ships in the Strait.
Meanwhile, Jordan intercepted and shot down four missiles that entered its airspace from Iran, and sirens were sounded for the third time in Bahrain on Tuesday.
Air Defense Union of Ukraine
Ukraine and its allies have agreed to an air defense coalition to counter Russia’s ballistic missile threat. The so-called coalition met in Paris on Monday, with 10 countries and several defense companies taking part.
“The more tools Ukraine has to shoot down Russian ballistic missiles, the more likely it is that President Putin will come to the negotiating table, because his last argument in this war will no longer work,” Ukrainian President Volodymyr Zelenskiy said after Monday’s announcement.
Data Day: China’s Exports and US CPI
It’s a busy day with the announcement of economic indicators.
China’s exports in June showed the highest growth since 2021. The data was fueled by a surge in demand for AI hardware as well as a pre-emptive race among U.S. retailers ahead of expected tariff hikes.
Meanwhile, economists late today expected the U.S. consumer price index to fall 0.2% in June due to a 25% drop in energy prices that month. However, core inflation rose 0.2% and is expected to reach an annualized rate of 2.8%, well above the Fed’s 2% target.
— Leonie Kidd
And finally…
“Listing is essential”: Chinese humanoid startups are rushing to launch IPOs
BEIJING — Humanoid startup LimX Dynamics is preparing to go public just over four years after it was founded during the pandemic.
Founder Will Chan said, “Listing is essential,” emphasizing the importance of timing. He spoke to reporters Tuesday ahead of the company’s announcement that it had raised $200 million in a pre-IPO round.
“Once the technology matures, if (the company) doesn’t go public, it may disappear like WM Motor,” Zhang said in Mandarin, comparing the situation to that of Chinese electric vehicle startups Nio, Xiaopeng and Li Auto, which went public one after another in the United States from 2018 to 2020, as translated by CNBC.
— Evelyn Chen
