Trump Threatens 20 Percent Fee on Strait of Hormuz Cargo Amid Iran Conflict

President Donald Trump threatened on Monday to declare the Strait of Hormuz United States territory and impose a 20 percent fee on all cargo moving through the vital waterway, a proposal that maritime experts and legal scholars say faces significant hurdles under international law.

Trump Proposes 20 Percent Cargo Fee for Strait of Hormuz Protection

Writing on Truth Social, President Trump stated that the United States would assume the role of guardian for the volatile trade route, requiring a 20 percent reimbursement on shipped cargo to cover security costs, as reported by CNN. The Strait of Hormuz is an international waterway where vessels maintain a right of free passage under international law.

The proposition immediately drew skepticism from logistics specialists regarding its financial viability. John McCown, a senior fellow at the Center for Maritime Strategy, told CNN that shippers typically pay carriers two to three percent of the value of their goods in fees, making a charge ten times that size potentially unaffordable. McCown added that insurance providers might ultimately dictate transit decisions by refusing to cover vessels entering high-security zones regardless of US protection offers.

James Kraska, a professor of international maritime law at the US Naval War College, told CNN that while unilateral state tolls on international straits are generally prohibited, an optional convoy protection service where shippers voluntarily pay for security would comply with international law. Bjorn Vang Jensen, an executive industry adviser at Xeneta, compared the concept to historical tolls assessed on declared cargo value by Denmark on the Øresund from the early 1400s through the mid-1800s, a practice ultimately halted by American intervention.

Military Escalations and Regional Strikes Across Iran

The shipping lane security threats accompany intensified military engagement between the United States and Iran. According to the BBC, the US has launched strikes on Iran for the 11th consecutive night, prompting Iranian state media to report activated air defenses in Tehran and explosions in Tabriz, Chabahar, Konarak, and Bushehr, the site of Iran’s sole nuclear power plant.

In response to threats against an underground nuclear site near Natanz, Iranian officials issued stern warnings. Mohammad Bagher Ghalibaf, Iran’s top negotiator, posted on X that if Iranian security and infrastructure are compromised, no regional oil exports or infrastructure will remain safe, stating that strait security must be maintained in the absence of American forces, according to BBC reporting.

Neighboring nations have also faced spillover effects from the conflict. Kuwait’s army announced on Wednesday that its air defences engaged incoming drone attacks from Iran, while Bahrain and Jordan confirmed intercepting both drone and missile strikes, as reported by the BBC. Secretary of State Marco Rubio stated on Wednesday that the US remains open to diplomacy, though he asserted that Tehran does not currently appear serious about talks, while noting that the US will defend ships from being destroyed in the straits. As tensions mounted, the price of oil rose to $94 on Wednesday.