UK Rejects Iranian Transit Fees for Ships in Strait of Hormuz

The United Kingdom has rejected a proposal by Iran to establish a system of tolls for ships transiting the Strait of Hormuz. The British government maintains that the waterway must remain open and governed by international freedom of navigation principles.

Foreign Secretary Yvette Cooper stated on April 9, 2026, that the Strait of Hormuz is an international shipping and transit route. She asserted that countries cannot unilaterally apply tolls or hijack international transit routes under the laws of the sea and United Nations arrangements.

Iran’s Proposal and U.S. Response

The proposal linked to Iran suggests a 10-point plan that includes collecting a toll of approximately $2 million per vessel transiting the strategic chokepoint. The Strait of Hormuz is a critical maritime passage that handles a significant portion of global oil shipments.

U.S. President Donald Trump indicated on April 8, 2026, that the United States could use Iran’s plan as a basis for a permanent ceasefire. President Trump has not argued against the collection of tolls and suggested the possibility of a joint venture regarding the operation.

British Diplomatic Position

Foreign Secretary Yvette Cooper criticized the use of escalatory rhetoric regarding the conflict, stating it can lead to escalatory consequences. She emphasized that the freedom of the seas is a global principle essential for the global economy and the cost of living within the United Kingdom.

Countries cannot simply hijack those kinds of international transit routes and unilaterally apply tolls. They cannot do that as part of the laws of the sea and the United Nations arrangements.

Yvette Cooper to the BBC

Cooper further argued that freedom of navigation must not be sold to individual bidders or unilaterally withdrawn, stating there is no place for tolls on an international waterway.

British Defence Secretary John Healey added that Gulf countries agree with the U.K. Position. Healey stated that introducing tolls would establish a potential principle that could be abused by other actors in different locations.

International Reactions and Economic Impact

The European Commission has also rejected the attempts by either Iran or the United States to charge vessels for crossing the Strait of Hormuz.

The dispute occurs amid broader regional tensions involving Israel and Lebanon. British Prime Minister Keir Starmer has been visiting the Middle East to lead diplomatic efforts related to these tensions.

The conflict has had immediate economic repercussions. Reports indicate that the first inflation report since the Iran war has affected Wall Street, with the conflict sending shockwaves through the global economy. In response to threats to the global financial system, President Trump has summoned bank leaders.