Strait of Hormuz stays shut as Trump demands Iran stop tolls
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President Trump on Thursday demanded Iran stop charging tolls for tankers to cross the Strait of Hormuz, as Iran's supreme leader promised the country would control the crucial waterway.
Why it matters: The already shaky ceasefire between the two countries is getting more strained by the day, even as they prepare for peace talks in Islamabad on Saturday.
- The narrow waterway off Iran's southern coast is vital to the normal functioning of the global economy
What they're saying: "There are reports that Iran is charging fees to tankers going through the Hormuz Strait — They better not be and, if they are, they better stop now!" Trump posted to Truth Social.
- That followed a Financial Times report that Iran is demanding the right to toll ships passing through the strait: $1 per barrel of oil aboard, paid in cryptocurrency.
- Trump later added in another post: "Iran is doing a very poor job, dishonorable some would say, of allowing Oil to go through the Strait of Hormuz. That is not the agreement we have!"
Threat level: A U.S. official earlier said the strait is "wide open," but at the same time admitted ships are not moving through it because they are intimidated by the Iranians.
- "Iran has threatened and coerced everybody," the official said.
- The official said the U.S. is considering steps that would encourage ships to start moving through the strait.
Zoom out: Sultan Al Jaber, head of the Abu Dhabi National Oil Company, posted on LinkedIn Thursday morning: "This moment requires clarity. So let's be clear: the Strait of Hormuz is not open."
- "Access is being restricted, conditioned and controlled. Iran has made clear — through both its statements and actions — that passage is subject to permission, conditions and political leverage."
State of play: Hundreds of tankers carrying oil and other vital commodities are still waiting to transit Hormuz, the New York Times reports.
- Their operators and captains remain unclear on how to get through without risking Iranian attack.
- Nearly 20,000 mariners are essentially stranded in the Persian Gulf amid the crisis, per the International Maritime Organization.
Follow the money: Iran "will bring the management of the Strait of Hormuz into a new stage" during negotiations with the U.S., the country's supreme leader Mojtaba Khamenei said in a new public message Thursday.
- That could potentially include the toll, which would keep global energy prices elevated indefinitely — plus violate international norms of free navigation.
- Oil is once again flirting with $100/barrel as of Thursday afternoon, and remains considerably above pre-war prices.
Khamenei commented on the strait in a new written message released Thursday for the 40-day commemoration of his father's assassination by Israel on the first day of the war.
- It was his first public message since the ceasefire with the U.S. came into force. He said Iran is the "definite victor" of the war.
- Iran "did not seek war and does not seek it" now, but stressed the country "will not withdraw from our rightful rights," he said.
- "We will certainly not leave the aggressors. We will demand compensation for all damages and the price for the blood of martyrs and the compensation of the wounded," he added.
What to watch: Whether Israel's continued attacks in Lebanon lead Iran to keep Hormuz effectively shuttered, choking off about 25% of the world's seaborne oil supply.
Editor's note: This story has been updated with President Trump's statement.
