Media: Oil industry pushes back on Iran Hormuz toll plan in White House talks

Oil executives are lobbying the Trump administration against proposals that would allow Iran to charge transit fees on ships passing through the Strait of Hormuz, warning of higher costs, legal risks, and broader geopolitical consequences, Politico writes.

Industry representatives have contacted the White House, Secretary of State Marco Rubio and Vice President J.D. Vance to protest the idea, which has emerged as part of ongoing discussions tied to a potential Iran peace framework, according to sources familiar with the matter.

“Hell yes,” one industry consultant said when asked if executives were contacting the White House to protest a toll on Hormuz. ”We didn’t have to do that before — and I thought we won the war. Any place you have access to the administration, you ask, what are you guys thinking?”

The same source said the administration’s response had been measured rather than dismissive. “The response administrative officials were giving industry representatives ‘is not a cold shoulder,’” the person said. “It’s more like, ‘Yeah, ok, we’ll take note.’”

Concerns were also raised directly during a meeting between oil industry representatives and senior State Department officials. Executives warned that agreeing to Iran’s proposal could increase shipping costs by around $2.5 million per cargo due to tolls and higher insurance premiums, costs likely to be passed on to consumers.

They also cautioned that such a move could set a precedent for other strategic chokepoints — including the Strait of Malacca and the Bosporus — to introduce similar charges. In addition, companies fear potential legal exposure if payments to Iran breach existing sanctions regimes.

Executives have also raised their concerns with Trump more cautiously. “The president is extremely sensitive to the legacy and judgment on the success of this war so pushing the president right now is seen as a risky proposition,” one source said. “But the White House is hearing from the industry despite the gingerness of the conversations.”

The White House has not directly addressed the industry’s objections. However, Press Secretary Karoline Leavitt indicated that negotiations with Iran were evolving.

Iran “put forward a more reasonable and entirely different and condensed plan to the president and his team,” Leavitt said. “The President’s red lines, namely the end of uranium enrichment in Iran, have not changed. And the idea that President Trump would ever accept an Iranian wishlist as a deal is completely absurd.”

Trump has said the US is “very far along with a definitive Agreement concerning long-term peace with Iran, and PEACE in the Middle East,” adding, “We received a 10-point proposal from Iran, and believe it is a workable basis on which to negotiate.”

Despite industry opposition, the president has floated the possibility of a joint arrangement involving Hormuz operations. “It’s an idea the president has floated,” Leavitt said. “And it’s something that will continue to be discussed over the course of the next two weeks. The immediate priority of the president is the reopening of the Strait without any limitations, whether in the form of tolls or otherwise.”

The Strait of Hormuz handles roughly a fifth of global oil supply, making any disruption or additional cost a significant concern for energy markets. Shipping traffic through the route remains severely restricted, with analysts noting continued instability following recent regional escalations.

Legal experts and diplomats have also voiced scepticism about Iran’s claims. “I expect serious pushback, and not only from the oil industry,” said Jason Bennett, a lawyer specialising in energy and international law. Hormuz “is an open international waterway. Up to today, there’s been no recognition of Iran’s legal right to control the Straits of Hormuz. I don’t see anyone accepting that.”

Diplomatic concerns extend beyond immediate costs. “Next will it be Russian tolls in the Arctic? Chinese tolls in the South China Sea?” one Washington-based Asian diplomat said. “My guess is probably [there will be] some kind of protest by the rest of the world, especially users of the Strait.”

Some diplomats also warned that Iran could apply tolls selectively. A second diplomat said “seven or more ships” flying the Malaysian flag were able to pass through the strait “toll-free, apparently.”

“Malaysia has always been really vocal against Israel, way before this whole Hormuz situation, so Tehran probably sees them as a friendly country,” the diplomat said. “That plus staying neutral on the US-Israel strikes probably helped a lot. All that hedging and maintaining good relations with everyone, even countries the West isn’t too fond of, actually pays off when things get rough like this.”

By Aghakazim Guliyev