Trump's Hormuz toll proposal draws criticism; Iran agrees in principle

U.S. President Donald Trump has proposed imposing a "security cost" of 20% on the value of all cargo transiting the Strait of Hormuz. This initiative, if implemented, could significantly increase the financial burden on shipping companies operating in the vital waterway.

An analysis suggests that for a Very Large Crude Carrier (VLCC) transporting approximately 2 million barrels of oil, the proposed cost, based on current international oil prices around $80 per barrel, would be around $30 million. This figure is roughly 15 times the $2 million fee Iran has historically charged for passage through the strait under a similar pretext.

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he who guarantees safe passage should be compensated is entirely correct

Industry insiders have reacted critically, with one anonymous maritime official describing the U.S. proposal as "highway robbery." Many shipping companies reportedly received no prior warning about this policy shift. The White House has yet to provide specific details on the implementation or coordination with Gulf allies.

Despite the criticism, Iran's Foreign Minister Abbas Araghchi responded to Trump's remarks via X (formerly Twitter), stating that the U.S. president's assertion that "he who guarantees safe passage should be compensated is entirely correct." However, Araghchi also qualified this by saying the proposed 20% fee is "excessive" and that Iran would handle tolls "fairly."

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the U.S. demand is excessive