The United States and Iran are once again edging closer to direct conflict, with both sides exchanging missile and drone strikes while announcing competing blockades around the Strait of Hormuz, the world's most strategically important oil transit route.
Amid the escalating tensions, US President Donald Trump has proposed that the United States should be compensated for securing maritime traffic through the strait. He suggested charging a fee equivalent to 20 per cent of all cargo transported through Hormuz as reimbursement for providing security in the region.
The proposal marks a departure from the longstanding US position that the Strait of Hormuz should remain open to international shipping without transit fees, a principle Washington had consistently supported before the latest conflict involving Iran, Israel and the United States.
"We will become guardians of the strait," Trump said, adding that countries benefiting from secure passage should contribute financially for the protection provided by the US.
Proposal raises legal and practical questions
The proposal has prompted questions over its compatibility with international maritime law and the principle of freedom of navigation, which governs transit through international waterways such as the Strait of Hormuz.
The latest escalation followed Iranian attacks on commercial shipping, after which Washington reinstated its naval blockade targeting Iran. During the same period, two oil tankers came under attack in the Strait of Hormuz, resulting in the death of an Indian crew member.
With shipping companies seeking greater security amid the conflict, Trump argued that the United States was willing to provide protection but expected compensation in return.
"I want to be reimbursed because we're protecting a very rich portion of the world," Trump said, adding that the United States was spending resources to safeguard the route and therefore deserved reimbursement.
In a subsequent interview with Fox News, Trump said the US had protected the strait for decades without receiving payment and argued that countries such as Saudi Arabia, Qatar, the United Arab Emirates, Kuwait and Bahrain should bear the financial burden for safeguarding their oil exports.
He also stated that the United States no longer depended on Gulf oil because of its own domestic energy production.
The proposal, however, leaves several operational questions unanswered. Trump has not clarified how the proposed 20 per cent fee would be calculated, who would collect it, how it would be enforced or what consequences ships might face for refusing to pay.
It also remains unclear whether the United States would assume liability if a vessel paying the proposed fee were still attacked while transiting the strait.
Renewed tensions over Hormuz
Iranian state media recently announced that the Strait of Hormuz would remain closed "until further notice," a claim dismissed by Trump, who pointed to ongoing US military strikes against Iranian targets.
Although diplomatic engagement between the two countries continues, Iranian officials have rejected any American role in administering or overseeing the strait.
The latest fighting has already disrupted global energy markets, contributed to higher oil prices and increased concerns over the security of one of the world's busiest maritime trade routes.
Critics argue that introducing transit charges after the outbreak of conflict would shift the financial burden of the crisis onto the international shipping community.
The proposal has also drawn attention because of earlier statements made by senior US officials.
In June, US Secretary of State Marco Rubio rejected suggestions that Iran could impose transit fees in the Strait of Hormuz, describing it as an international waterway where ships should not be required to pay for passage.
Rubio also said at the time that there was no support among Gulf countries for imposing such tolls and indicated that the United States opposed the idea.
Concerns over wider implications
For decades, the United States has promoted freedom of navigation as a core principle of international maritime policy.
Some analysts argue that introducing mandatory transit fees could weaken that longstanding position while potentially strengthening Iran's argument that it too has the right to impose charges for vessels using the strait.
During the early stages of the conflict, Iran reportedly mined parts of the waterway and was accused of demanding substantial payments from commercial vessels in exchange for safe passage. Iranian lawmakers have also discussed legislation asserting greater authority over shipping through Hormuz, including the possibility of levying charges on vessels from countries regarded as hostile.
An interim understanding between the two sides reportedly recognised Iran's influence over the strait while temporarily preventing either party from imposing transit fees for 60 days, leaving open the possibility of future negotiations.
Iranian Foreign Minister Abbas Araghchi responded to Trump's proposal by remarking on social media that a 20 per cent fee was excessive and suggesting that Iran would be "fair."
The Strait of Hormuz is recognised under international law as an international waterway where vessels enjoy the right of transit passage.
The International Maritime Organization has also stated that there is no legal basis for introducing mandatory transit fees solely for passage through an international strait.
