Full Breakdown
US-Iran Interim Deal and the Dispute Over Toll-Free Passage Through the Strait of Hormuz
6/25/2026, 5:56:09 AM
Core Event: Claim of No Tolls and the 60-Day Toll-Free Provision
On 24 June 2026 President Donald J. Trump posted on Truth Social that Iran had told the United States there would be “no tolls, no insurance costs, & no other charges of any kind” for ships transiting the Strait of Hormuz. He warned that if the claim proved false, “negotiations would end, immediately.” The statement coincided with the signing of a 14-point memorandum of understanding (MOU) in Switzerland that calls for the reopening of the strait toll-free for at least 60 days while broader issues—including sanctions relief and Iran’s nuclear programme—are negotiated.
Background & Context: War, Negotiations, and the MOU
The United States and Israel launched airstrikes against Iran in February 2026, prompting Iran to block the Strait of Hormuz, a chokepoint that carries roughly one-fifth of global oil shipments. After three months of fighting, the parties reached a preliminary framework in Switzerland that seeks to end hostilities, restore navigation, and establish a joint Iran-Oman working group to discuss future administration of the waterway.
Key Figures & Groups
- Donald J. Trump – President of the United States, author of the toll-free claim.
- Mohammad Bagher Ghalibaf – Iran’s chief negotiator and parliamentary speaker, asserting continued Iranian authority over the strait.
- Badr al-Busaidi – Omani Foreign Minister, emphasizing “toll-free safe passage.”
- Marco Rubio – U.S. Secretary of State, reiterating that international law forbids tolls.
- International Union of Marine Insurance (IUMI) – Industry body welcoming the MOU and monitoring maritime security.
- Joshua Kurlantzick (Council on Foreign Relations) and Ian Ralby (Center for Maritime Security) – Experts warning of economic and legal risks from tolls.
Official Statements & Responses
The United States has framed the MOU as a guarantee of toll-free navigation for the first 60 days, with the U.S. and Iran agreeing to make Iran’s frozen assets “fully available” once the agreement is implemented. Iran’s Persian Gulf Strait Authority (PGSA) has published passage rules that reserve the right to introduce insurance fees in the future, while Iranian officials have repeatedly said the strait “will never return to its pre-war conditions.” Oman, in a joint statement with Iran, affirmed its commitment to “toll-free safe passage” and to work with the United Nations International Maritime Organization on temporary transit corridors. Secretary of State Rubio stressed that “it’s an international waterway. No country is allowed to charge tolls or fees on an international waterway.”
Criticism & Opposition
Hard-line Republicans have criticized the deal, questioning the U.S. stance on frozen Iranian assets and the potential for future fees. Maritime experts warn that establishing a precedent for tolls could spread to other chokepoints such as the Strait of Malacca, raising global shipping costs and threatening food and medicine supply chains. Kurlantzick described the scenario as a “huge threat” to the principle of free navigation, while Ralby warned it would “open Pandora’s box” for unaffordable price increases.
Conflicting Reports & Gaps
U.S. officials cite Iran’s verbal assurance of no tolls, whereas Iran’s PGSA rules allow future insurance fees and Iranian negotiators have signaled intent to retain control over the strait. Oman’s statements stress toll-free passage, yet the joint Iran-Oman working group’s mandate includes discussion of “services… and the costs associated with them in accordance with international standards.” The precise timeline for releasing frozen Iranian assets and the scope of nuclear-inspection commitments remain disputed.
Why It Matters
The Strait of Hormuz handles about 20 % of world oil traffic; ship movements fell from 120-140 vessels per day pre-war to as few as five in the conflict’s peak. Prolonged tolls could raise global energy prices, disrupt supply chains for food and medicine, and encourage other states to monetize strategic waterways, undermining the United Nations Convention on the Law of the Sea.
What’s Next
Technical-level talks are slated to resume next week under Pakistan’s foreign ministry, with the Iran-Oman working group expected to draft a framework for navigation services after the 60-day toll-free period. The United States has indicated that any future fees must be prohibited under international law, while Iran maintains that post-war administration will differ from the pre-war status quo.
Verbatim Quotes
- “NO TOLLS, NO INSURANCE COSTS, & NO OTHER CHARGES OF ANY KIND BEING SOUGHT OR RECEIVED BY IRAN ON SHIPS TRAVELING THE STRAIT OF HORMUZ.” — Donald J. Trump, President of the United States
- “It’s an international waterway. No country is allowed to charge tolls or fees on an international waterway. That’s existing international law,” — Marco Rubio, U.S. Secretary of State
- “will never return to its pre-war conditions” — Mohammad Bagher Ghalibaf, Iran’s chief negotiator
- “We're opening up Pandora's box for increasing the cost of everything beyond what the average citizen of any country can afford,” — Ian Ralby, senior fellow, Center for Maritime Security
- “Once you start down that road, there's no telling where it leads,” — Joshua Kurlantzick, senior fellow, Council on Foreign Relations
