Senator Tom Cotton (R., Ark.) wrote to Treasury Secretary Scott Bessent on Thursday urging the Trump administration to move quickly against any nation or entity that assists Iran in setting up a toll‑collection system in the Strait of Hormuz. Cotton says the proposed scheme could earn the Iranian regime as much as $2 million per vessel.
The senator is preparing new legislation that would give the administration additional tools to stop what he describes as Iranian bullying of commercial shipping in the vital waterway. His letter follows Iran’s announcement on Thursday that it has created a Persian Gulf Strait Authority (PGSA) and, according to Tehran, "has defined the boundaries of the Strait of Hormuz management supervision area," extending oversight from the strait into the Gulf of Oman.
Under the PGSA framework, commercial ships would be required to apply for permission, providing details on ownership, insurance, crew manifest and cargo. The authority would then levy a charge of up to $2 million per vessel in exchange for what Iran calls “safe passage.”
The Trump administration has already condemned the plan, warning that "any type of Iranian -controlled toll system will detonate ongoing talks around a permanent ceasefire plan." The administration says the move threatens delicate negotiations aimed at a lasting ceasefire in the region.
Cotton argues that the PGSA cannot function without the consent of other nations and that the United States must hold accountable any actor that enables the Iranian regime. He proposes using existing legal authorities to sanction the PGSA, its officials and any foreign party that pays, processes or otherwise facilitates the tolls.
President Donald Trump and Secretary of State Marco Rubio also expressed opposition on Thursday, stating that the PGSA is unacceptable and will be met with resistance by Washington. The proposal appears to have backing from China, which is viewed as an Iranian ally, as well as from several Arab states.