Senator Tom Cotton (R., Ark.) is pressing the Trump administration to immediately sanction any country or entity helping Iran establish a 'toll booth' in the Strait of Hormuz that could net the hardline regime as much as $2 million per vessel. The senator says that he is crafting new legislation that will aid the Trump administration's efforts to stop Iran from bullying vessels in the pivotal shipping corridor.
The letter sent Thursday to Treasury Secretary Scott Bessent is a direct response to Iran's efforts to create a 'permanent Hormuz toll system' in the strait along with Oman, a major U.S. ally. The rumored efforts have already drawn a sharp rebuke from the Trump administration, which says that any type of Iranian-controlled toll system will detonate ongoing talks around a permanent ceasefire plan.
Iran's Strait of Hormuz Toll System
Iran formally created a Persian Gulf Strait Authority (PGSA) on Thursday and said it 'has defined the boundaries of the Strait of Hormuz management supervision area,' which will extend from the Strait and into the Gulf of Oman. Under the framework, commercial vessels would need to apply to the PGSA, disclose their ownership, insurance, crew manifest, and cargo. Tehran would then charge up to $2 million per ship to ensure safe passage through the waterway.
Senator Cotton argues that the PGSA cannot operate without the consent of other nations, and the United States must ensure every actor enabling the terrorist Iranian regime is held accountable. He supports the use of existing authorities to impose sanctions on the PGSA, its officers, and any foreign entity that pays, processes, or facilitates tolls to Iran for passage through the Strait of Hormuz.
President Donald Trump and Secretary of State Marco Rubio both said on Thursday that the PGSA is unacceptable and will be met with resistance by Washington. The measure is notably backed by China, considered an Iranian ally, and numerous Arab nations.