Trump Proposes 20% Toll on Hormuz Shipping Amid Rising US‑Iran Tensions

Amid heightened tensions between the United States and Iran, President Donald Trump announced that the United States will resume its naval blockade of Iran and assume the role of guardian of the Strait of Hormuz.

He further stated that a 20 % surcharge will be imposed on all vessels passing through the strait.

The following overview examines Trump’s remarks and the potential implications for vessels navigating the Strait of Hormuz.

What did Trump say?

Trump disclosed his intentions for the Strait of Hormuz during a Fox News interview and a post on his Truth Social platform on Monday.

“We are reinstating the Iranian blockade, a term used because it blocks Iran’s vessels and their customers from entering or departing,” Trump posted.

The US Navy‑led Joint Maritime Information Center announced that the blockade would commence at 20:00 GMT on Tuesday.

“From now on, the United States will be known as the ‘Guardian of the Hormuz Strait,’ and, as a matter of fairness, will be reimbursed a 20 % surcharge on all cargo shipments to cover the costs of ensuring safety and security in this highly volatile region,” Trump added.

“The process and formation will begin immediately,” he said.

Andreas Krieg, a senior lecturer at King’s College London’s School of Security Studies, told Al Jazeera that Trump’s recent comment “appears more like an improvised political remark than a formulated policy.”

“It reflects President Trump’s instinct to show he still possesses leverage and options, even as Washington’s capacity for maneuver has diminished markedly,” Krieg said. “The issue is that the proposal misreads the nature of the Hormuz dispute. It is no longer chiefly about revenue; it concerns authority, prestige, and who determines the rules governing the Gulf’s most critical waterway.”

Could Trump’s proposal work?

Krieg said that, in practice, he does not expect the US‑administered 20 % toll to be effective.

He explained that Washington “has no legal mechanism to levy charges on international shipping passing through the strait, nor does it physically control the waterway.”

“More importantly, implementing an American toll would inadvertently validate Iran’s claim that Hormuz passage can be legitimately monetised. Washington has repeatedly asserted that freedom of navigation is a principle of international law,” Krieg said.

“If it suddenly begins to charge for access itself, it undermines its own legal and political standing while bolstering Tehran’s narrative that control over Hormuz entails a right to levy fees.”

What would this mean for ships trying to travel through the strait?

Krieg explained that commercial shipping companies will follow whoever can realistically affect their ability to sail safely.

“They are not choosing between an American toll and an Iranian demand on commercial grounds. Instead, they evaluate risks based on insurance, security, and operational continuity,” he explained.

He added: “If Iran continues to exercise coercive control over the strait, shipping companies will adapt to that reality regardless of any White House announcement.”

Prior to the conflict, most commercial traffic in the Strait of Hormuz followed established lanes that ran roughly through the centre of the waterway.

Now, vessels confront a stark choice: navigating near the Omani side of the strait risks attack by Iran, while sailing closer to Iranian waters — despite coordination with Iran — risks accusations of violating Trump’s blockade and potential US attacks.

Krieg said that Trump’s proposal would heighten uncertainty for vessels navigating the Strait of Hormuz.

“Shipping companies already receive conflicting guidance from insurers, naval authorities, and regional governments,” he said. “Introducing a politically motivated American toll proposal without an internationally recognised enforcement mechanism adds another layer of legal and commercial ambiguity. Markets dislike uncertainty far more than they dislike predictable costs.”

What does international law say about tolls in waterways?

Arsenio Dominguez, Secretary‑General of the United Nations shipping agency, the International Maritime Organization (IMO), told Al Jazeera in April that introducing tolls in waterways violates international law.

“Countries do not have the right to impose tolls, payments, or charges on these straits,” Dominguez said.

“Any introduction of tolls is contrary to international law,” he said.

In a statement on Monday, the IMO said it opposes any imposition of fees for sailing through the strait.

“We have always been consistent on our stance on fees. IMO stands firmly against charging fees for passage through straits used for international navigation,” the agency said.

In June, Trump’s Secretary of State and National Security Adviser, Marco Rubio, rejected the notion that any country should charge tolls for passage through international waterways.

“No country is permitted to charge tolls or fees on an international waterway. That is existing international law,” Rubio said, responding to the prospect of Iran levying fees for passage.

On Monday, Brazilian President Luiz Inácio Lula da Silva described Trump’s plan as “piracy.”

“President Trump tweeted that he will unblock the Strait of Hormuz,” Lula said at an event in São Paulo. “But for every ship, the oil owner must pay him 20 % — a practice once deemed piracy.”

What is the backdrop?

Trump’s renewed blockade follows a week of renewed hostilities between the United States and Iran, which has eroded peace negotiations.

The United States launched attacks on Iran last week, accusing it of violating the terms agreed upon regarding the Strait of Hormuz during negotiations. Since then, Iran’s Islamic Revolutionary Guard Corps (IRGC) has carried out multiple waves of retaliatory attacks on US military assets in Gulf countries and Jordan.

Krieg said the deeper issue is strategic.

“Every time Washington publicly floats new ideas without first building international consensus, it reinforces Tehran’s perception that the United States is seeking leverage after exhausting its military options,” Krieg said. “That encourages the IRGC to maintain its stance rather than compromise. Ironically, such proposals make it harder — not easier — to persuade Iran to step back from its increasingly assertive posture in the strait.”

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