Good news for oil market: Donald Trump says Iran will not collect toll from Strait of Hormuz

Washington: There is good news for the oil market. President Donald Trump stated on Wednesday that Iran has given the US clear assurances that no tolls, insurance fees, or other additional charges will be levied on vessels passing through the Strait of Hormuz. Posting on his social media platform, Truth Social, Trump wrote that Iran has informed the US that no tolls, insurance fees, or other charges of any kind will be collected from ships traversing the Strait.

This assurance has been given to ensure the safe passage of vessels. Notably, this announcement comes amidst ongoing talks aimed at establishing lasting peace following recent tensions in the Middle East. Trump also clarified that this arrangement is currently in effect, though he did not provide specific details regarding what would happen after the 60-day ceasefire or negotiation period concludes.

Ongoing Talks in Switzerland?

Negotiations between the US and Iran are currently underway in Switzerland, covering critical issues such as Iran's nuclear program, regional security, and maritime security. Trump emphasized that no "liquid funds" or cash have been transferred to the Iranian government. He explained that billions of dollars in Iranian assets held under US jurisdiction would now be managed through a new, strictly controlled mechanism. According to the administration's plan, these frozen funds will be used specifically to purchase US agricultural products—such as corn, wheat, and soybeans—intended directly for the Iranian public. Trump stated, "We will give some of their money—which is entirely under our control—to our farmers, because there is a dire need for these food grains in Iran."

What is Iran Saying?

On the other hand, Iran has repeatedly stated that it plans to levy "maritime service fees" on vessels passing through the Strait of Hormuz. Tehran describes this not as a toll, but as a charge for administrative services such as navigational assistance, security, and maintenance. The US has strongly opposed this proposal. On Tuesday, Iran and Oman issued a joint statement announcing that both countries would study a proposal to levy fees for administrative services related to the Strait of Hormuz. In the statement, both nations emphasized their sovereignty over this waterway. Oman, a long-standing key ally of the United States, is collaborating with Iran on this matter.