Oil executives in Washington have warned President Trump that allowing Iran to levy a toll on tanker traffic through the Strait of Hormuz would set a dangerous precedent for global shipping. They argue that a fifth of the world’s crude and LNG flows through the waterway and that any toll could empower Tehran, weaken U.S. interests, and prompt rivals to seek similar fees.

The U.S. and Israel launched a war against Iran last year, prompting Iranian forces to target vessels and inflate insurance premiums. Tehran has since floated a fee‑collection plan that would operate even after the ceasefire. Industry leaders, including Sultan al‑Jaber, chief of ADNOC, have condemned the idea as illegal and a threat to energy security.

Trump has hinted at a joint tolling scheme, then retracted, stating Iran should not charge fees. The White House maintains the strait is international water. Oil producers urge that reopening the channel without tolls is essential to prevent a price spike that could push global oil prices higher and destabilize markets. The decision will affect shipping costs and investor sentiment across the energy sector.