UN maritime agency opposes Hormuz transit fees after Trump demands protection money

• Trump ordered the U.S. Navy to reimpose a blockade on Iranian ships while demanding 20% of cargo value as reimbursement for protecting other vessels through Hormuz
• International maritime law experts confirm tolls violate the Convention on the International Maritime Organization and treaties guaranteeing unimpeded transit rights through international straits
• Security tensions have escalated with Iran attacking commercial ships, demanding use of northern routes through its waters, while the U.S. Navy escorts vessels through a southern corridor along Oman's coast

Summary: UN Maritime Agency Opposes Hormuz Transit Fees After Trump Demands Protection Money

The International Maritime Organization (IMO), a UN agency, has rejected the legality of transit fees in the Strait of Hormuz following President Trump's demand for payment equivalent to 20% of all cargo value shipped through the strait in exchange for U.S. Navy protection.

Key Developments:

The IMO stated there is "no legal basis through which to introduce mandatory tolls simply to transit through a strait," reaffirming its opposition to charging fees for passage through international navigation straits. International maritime law expert James Kraska confirmed that such tolls violate international law, noting the world has an unimpeded right to transit Hormuz.

Trump announced the U.S. would reinstate a blockade targeting only Iranian ships while keeping the strait open for other nations. Iran previously demanded tolls but agreed to forgo them for 60 days under a memorandum of understanding signed with the U.S. on June 17.

Market Impact:

Nordic American Tankers CEO Herbjorn Hansson called Trump's 20% fee "unrealistic," emphasizing that Iran and the U.S. must reach agreement on strait administration. The CEO noted that "Iran is suffering, America is suffering, 192 countries outside the Hormuz Strait are suffering."

Security tensions have escalated after Iran attacked multiple commercial ships transiting the strait, with Tehran demanding all vessels use a northern route through its territorial waters. The U.S. Navy has been escorting ships through a southern corridor along Oman's coast. The U.S. has launched multiple retaliatory airstrikes against Iran, with Tehran responding by firing on U.S. Gulf allies.