Trump's proposed 20% fee on Hormuz shipping faces international law criticism

The United States is planning to levy a 20% fee on all goods passing through the Strait of Hormuz, a move announced by President Donald Trump as compensation for ensuring the waterway's security. This decision comes amid heightened tensions between the U.S. and Iran, with the U.S. military reporting three days of bombing Iranian military targets and reinstating a naval blockade against Tehran.

International experts have voiced strong opposition to the proposed fee. Lars Hansen, CEO of Nordic American Tankers, described the 20% charge as "unrealistic." More critically, Michael Scharr, an expert in international maritime law at the U.S. Naval War College, stated that charging for passage through the Strait of Hormuz violates international law, as all nations possess the right to unimpeded transit.

“

The world has the right to unimpeded passage through Hormuz, and charging for maritime traffic in this strait violates international law.

Analysts quoted by The New York Times expressed skepticism about the feasibility of Trump's proposed fee structure. If the rate is tied to cargo value, it could potentially double the cost of oil shipments transiting the strait. ING Research senior logistics economist Robert Rooman noted that if oil is priced at $80 per barrel, a $10 per barrel rate increase from the fee would raise the total cost to $26 per barrel.

The U.S. actions, including the naval blockade and the proposed fee, signal a significant escalation in the conflict with Iran. The Strait of Hormuz is a critical chokepoint for global oil supplies, and any disruption or significant cost increase could have far-reaching economic consequences.

“

20% is unrealistic.