Trump Proposes US Security Fee for Shipping Through Strait of Hormuz Amid Iran Tensions

In response to ongoing tensions with Iran and attacks on shipping vessels in the Strait of Hormuz, US President Donald Trump has proposed a new plan to provide American security for ships passing through this critical waterway. Announced on his social media platform Truth Social on Monday, Trump declared that the United States would become the "guardian of the Strait of Hormuz," charging a 20% fee on cargo passing through to cover the costs of protection.

The proposal has raised significant questions about its international legality and economic feasibility. Experts like John McKeon from the Center for Maritime Strategy highlight the ambiguity in how the 20% fee would be calculated, whether it would be based on US operational costs divided among ships, the cost of escorting cargo, or 20% of the cargo's value itself. McKeon warns that such a high fee, far exceeding the typical 2-3% shipping commission, would likely be rejected by shippers.

Insurance companies may also influence the outcome by refusing to insure vessels that transit the strait without adequate security, regardless of payment willingness. Legally, the Strait of Hormuz is an international waterway with free passage rights under international law. While Iran previously imposed what it called "service fees" on ships, these were considered illegal transit tolls. According to maritime law professor James Kraska, Trump's voluntary escort and fee model could comply with international law since payment would be optional, unlike Iran's mandatory charges.

However, Kraska cautions that legality does not imply advisability, noting that similar initiatives are historically rare. The last comparable case involved Denmark charging foreign ships for passage through the Øresund Strait from the 15th to 19th centuries, a practice ended due to American intervention. This historical irony underscores the complexity of Trump's proposal amid the strategic and legal challenges surrounding the Strait of Hormuz.