President Trump had a message for Iran on Saturday: You will not be charging tolls in the Strait of Hormuz. But then he added a caveat that left diplomats and oil traders scratching their heads.
Speaking to reporters aboard Air Force One, Trump declared the U.S.-Iran memorandum of understanding 'explicitly prohibits any tolls or fees in the Strait of Hormuz.' But when pressed, he acknowledged the ban only lasts 60 days. 'After that, we’ll see. The United States may need to consider fees to cover the cost of keeping those waters safe,' he said.
The Strait of Hormuz is the world’s most critical oil chokepoint, with nearly a quarter of global petroleum passing through its narrow channel. For decades, Iran has threatened to block it or impose tolls as leverage against Western sanctions. The new MOU was supposed to end that threat, but Trump’s comments suggest the U.S. itself might adopt the same playbook.
An Unraveling Deal?
The memorandum, signed in Geneva last week, was hailed as a breakthrough. It froze Iran’s nuclear program in exchange for relief from some sanctions and secured the free flow of oil through the strait. But Trump’s admission that the toll ban is temporary has sent shockwaves through energy markets.
Oil prices spiked 3% on the news before settling. Analysts warn that any U.S.-imposed toll would be a violation of international maritime law and could trigger retaliation from China, which imports most of its oil through the strait.
'Trump is playing with fire. The MOU was fragile enough. Now he's suggesting the U.S. might do exactly what he accused Iran of planning to do.' — Dr. Farid Ghassem, former Iranian diplomat
The 60-Day Cliff
So what happens after the 60-day period? The MOU includes a review clause, but no clear mechanism for extending the toll ban. Trump’s remarks indicate the White House sees tolls as a potential revenue source for the U.S. Navy’s Fifth Fleet, which patrols the region.
Critics say this is a dangerous precedent. If the U.S. can charge for passage, why can’t Iran? Or Oman? Or any other littoral state? The principle of 'innocent passage' under the United Nations Convention on the Law of the Sea explicitly prohibits such fees.
'The United States is not a signatory to UNCLOS, so they don’t feel bound by it,' said Admiral (ret.) James Stavridis. 'But this is a diplomatically clumsy move. It hands Iran a narrative: that the U.S. is hypocritical.'
Global Reactions
European allies were quick to distance themselves from Trump’s comments. A State Department spokesperson later clarified that 'no final decision has been made' on tolls, but the damage was done.
Iranian Foreign Ministry spokesman Saeed Khatibzadeh tweeted: 'The U.S. president admits his own duplicity. Iran will not be lectured on maritime rights by a country that threatens to impose its own tolls.'
Meanwhile, shipping companies are scrambling to assess the risk. Insurance premiums for vessels transiting the strait are expected to rise.
The bottom line: Trump’s off-the-cuff remark may have just shattered the fragile peace he helped broker. Or it may be another negotiating tactic. With this president, you never know. But the world is watching — and oil markets are paying the price.
