On Thursday, the EU publicly opposed any idea of charging fees for vessels passing through the Strait of Hormuz, putting a halt to recent remarks by US President Donald Trump about establishing a joint toll mechanism with Iran. A spokesperson for the European Commission stated that international law guarantees freedom of navigation, meaning "there should be no payments or tolls," and emphasized that the Strait of Hormuz, as a critical global energy route, should be restored to free, secure, and unrestricted passage.
Discrepancies Between Trump and the White House
The controversy quickly escalated due to mixed signals from within Washington. Reuters reported on April 8 that Trump suggested the US and Iran could collect tolls through some “joint venture arrangement”; however, White House Press Secretary Levitt later clarified that the president's current priority is to restore passage in Hormuz “without any restrictions,” including not imposing tolls. On April 10, Trump further warned on Truth Social that if Iran does start charging oil tankers, "it better stop immediately." This shift demonstrates that the White House is moving from earlier transactional rhetoric toward a stance more aligned with allies advocating free navigation.
The EU's Legal Position
From the EU's perspective, this is not just a policy disagreement; it is an issue of international law. The EU Council stated on April 9 that under international law, and according to the United Nations Convention on the Law of the Sea, the free and safe passage through Hormuz should be ensured; the European Commission's spokesperson further explained that “freedom of navigation” implies international straits should not become toll routes. Reuters cited the International Maritime Organization on the same day, noting that imposing tolls on international straits would set a "dangerous precedent," as the United Nations Convention on the Law of the Sea stipulates that coastal states should not obstruct or suspend transit passage rights.
Iran's Leverage in the Strait
The problem is that Tehran still holds some practical control. Reuters reported on April 9 that despite a two-week ceasefire between the US and Iran, traffic through the Strait of Hormuz remains at less than a tenth of normal levels; only seven ships passed through in the last 24 hours, and the Iranian Revolutionary Guard has demanded that vessels use a route closer to the Iranian waters near Larak Island. The report also mentioned media reports suggesting that Iran might charge up to $2 million per ship. In other words, even if a toll system is not fully formalized, Iran has already turned "who can pass, how they pass, and under what conditions they pass" into negotiating points.
Market Impact
This explains why the market is not fully convinced by the ceasefire. The Strait of Hormuz carries about one-fifth of the world's seaborne crude oil and liquefied natural gas flow, and any restrictive arrangements imply higher freight, insurance costs, and political risk premiums. Reuters reported on April 10 that oil prices rose by about 1% that day, with a cumulative increase of about 50% since the outbreak of war; Japan is considering further releases of oil reserves due to energy strain. For the EU, opposing the toll is not only a legal stance but also a measure to prevent global energy trade from being permanently embedded with new geopolitical costs.
