What to know about Trump plan for Strait of Hormuz toll

Administration What to know about Trump plan for Strait of Hormuz toll Comments: by Ashleigh Fields - 07/14/26 10:48 AM ET Comments: Link copied by Ashleigh Fields - 07/14/26 10:48 AM ET Comments: Link copied

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President Trump on Monday proposed that the U.S. impose a toll on the Strait of Hormuz for providing safe passage to vessels traveling through the battle-ridden waterway in attempts to restore international oil shipping levels.

The president said the U.S. would be “reimbursed” at a rate of 20 percent for being the “guardian” of the critical strait that historically carried a fifth of the world’s oil transports per day.

Shipping levels have remained low due to the threat of Iranian fire in open waters and a previous American naval blockade.

Here’s what to know about the proposed conditions for reopening the crucial shipping route:

How would it work?

It’s unclear how the U.S. plans to implement this unprecedented toll of the waterway, which Secretary of State Marco Rubio said in a past comment would be a “violation” of international law.

Trump has previously referenced a potential toll paid by vessels traveling through the Panama Canal as precedent for similar charges on the Strait of Hormuz.

However, Panama can legally charge tolls because its canal is an artificial waterway. Under international law, man-made canals are private property. Panama owns and runs the canal and uses tolls to pay for daily repairs and giant updates.

The cost to transit the Panama Canal ranges from roughly $3,000 for a private sailboat to over $450,000 for massive cargo ships. Fees are strictly based on vessel type, size, and the amount of cargo or passengers being carried.

The Trump administration said a U.S. toll on the Strait of Hormuz would amount to a 20 percent tax on all cargo shipped.

The fee charged by the U.S. could add over $30 million in costs for ships, according to The New York Times.

Has Iran attempted to charge a toll?

Iran has attempted to exert control over the waterway. Multiple international reports allege that Tehran has charged an unofficial toll of $2 million for “safe passage” through the Strait after laying land mines underwater.

Iran’s landmines and naval mines have not been fully removed, but after the signing of the Memorandum of Understanding with the U.S. in June, American forces began minesweeping.

A similar effort occurred in April.

Iran’s Foreign Minister Seyed Abbas Aragachi on Monday floated charging an official toll at a cheaper rate than Trump’s proposed 20 percent fee.

“POTUS is absolutely right. Whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service,” Aragachi wrote in a post on X.

“Iran has always been the GUARDIAN of the Strait and will remain so FOREVER. 20% is of course too much. We will be fair,” he added.

Has the Trump administration previously considered joint tolls?

In April, the Trump administration proposed a joint toll on the Strait of Hormuz that would benefit both Iran and the U.S. when fighting was briefly paused earlier this year.

“Big money will be made. Iran can start the reconstruction process. We’ll be loading up with supplies of all kinds, and just ‘hangin’ around’ in order to make sure that everything goes well. I feel confident that it will,” Trump previously wrote in a Truth Social post.

“Just like we are experiencing in the U.S., this could be the Golden Age of the Middle East!!!” he added.

Months later both the U.S. and Iran launched strikes against each other, with the Trump administration officially resuming the war in mid-July.

Technical talks are continuing, and Trump said he still believes a peace deal is possible as lawmakers and the international community urge the White House to find a way to end the war.

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