Strait of Hormuz toll confusion: Iran says 'service fees,' Trump says 'no tolls'

Conflicting statements from the United States and Iran have created confusion over potential fees for passage through the Strait of Hormuz. President Donald Trump asserted on the sidelines of the G7 summit that an agreement ensures the vital waterway remains open and free of tolls. "We have an agreement that ensures it's open and there are no tolls," Trump told reporters.

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We have an agreement that ensures it's open and there are no tolls.

However, Iran's Foreign Ministry spokesperson, Esmaeil Baghaei, presented a different perspective. He stated that a memorandum of understanding (MOU) allows Iran to take necessary measures for safe navigation and that while not a "toll," fees would be collected for related services such as navigation support, environmental protection, and vessel insurance. Some Iranian reports, citing sources within the Islamic Revolutionary Guard Corps, suggest the MOU allows free passage for only 60 days, after which fees will be levied for services.

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Iran is not looking to impose tolls, but will collect fees for other related services such as navigation support, environmental protection, and vessel insurance.

International leaders have voiced concerns about Iran's potential move. French President Emmanuel Macron described the proposed fees as "wordplay" and pledged to make every effort to prevent their imposition. Macron warned that if Iran were to charge for passage, it could set a dangerous precedent, potentially leading to global price increases as other nations might impose similar fees on other straits.

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The imposition of fees by Iran for passage through the Strait of Hormuz is merely wordplay. We will make every effort to ensure that tolls are not imposed.

The legal basis for such fees is unclear. While artificial waterways like the Panama and Suez Canals allow for service fees, international law does not explicitly permit tolls on natural passages like the Strait of Hormuz. Experts, such as James Holmes of the U.S. Naval War College, argue that Iran's only potential "service" is refraining from attacking ships, which does not meet the criteria for a fee. The full details of the U.S.-Iran MOU are expected to be released following a signing ceremony on June 19, which may clarify the situation.

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The only service Iran can claim to provide is not attacking ships, and that alone does not meet the standard of what can be called a service.