Brazilian President Luiz Inacio Lula da Silva has condemned the United States' plan to impose hefty fees on ships transiting the Strait of Hormuz, calling it 'piracy.' Speaking at a public event in Sao Paulo state, Lula criticized President Donald Trump's proposal to reinstate a blockade of Iran's ports and charge a 20 percent levy on all cargo shipped through Hormuz. 'This used to be considered piracy,' Lula said, warning that the conflict is driving up prices of basic foodstuffs and fuel in Brazil.
Trump vowed to reimpose the blockade and levy after a fresh flare-up in fighting, despite an interim agreement reached in June to end the war. Tehran began blocking the key conduit for petroleum shipments after the US and Israel launched attacks in late February, prompting Washington to halt shipping to and from Iranian ports. The restrictions were later eased following the interim agreement, but Trump has now vowed to reinstate them.
Lula, an 80-year-old veteran leftist leader seeking a fourth term as president in October elections, warned that the US plan would have severe economic repercussions. 'A major nation like the United States, which I believe has fought against piracy for a long time, cannot now become a pirate,' he said. The conflict has already caused global oil prices to surge, impacting Brazil's economy.
In response to the rising oil prices, Lula's government introduced a 12 percent tax on crude oil exports in March. Revenues from this tax are being used to mitigate the impact of the price hikes on essential goods such as beans, rice, tomatoes, and onions, as well as fuel. Brazil has also implemented a range of temporary measures to limit fuel price increases.
The Strait of Hormuz, a narrow waterway between the Persian Gulf and the Gulf of Oman, is a critical route for global oil shipments. Any disruption or additional charges in this area can have significant implications for global oil markets and economies worldwide. Lula's comments highlight the international concern over the US plan and its potential impact on global trade and security.
