Trump Floats Joint US-Iran Venture to Impose Toll on Strait of Hormuz
In a controversial move, former US President Donald Trump has proposed a joint venture with Iran to charge ships for crossing the Strait of Hormuz, potentially ending a decades-long international agreement that allowed free passage through the critical waterway. According to reports, Trump described the idea as a "beautiful thing" during discussions, with sources indicating Iran aims to impose fees of up to $1 million per vessel.
Ceasefire Deal Sparks Revenue-Sharing Proposal
The proposal emerged following an 11th-hour ceasefire agreement between the US and Iran, announced just hours before Trump's deadline for Iran to reopen the strait. In a statement on Truth Social, Trump cited conversations with Pakistani officials and Iran's commitment to safely open the passageway as reasons for suspending military actions. He claimed the ceasefire, set for two weeks, aims to finalise a long-term peace agreement, though details on Iran's nuclear programme remain unclear and disputed.
Iran's Military Control and Regional Tensions
Iran's foreign minister, Abbas Araghchi, has asserted that the Strait of Hormuz will be controlled by the Iranian military, hinting at potential diplomatic conflicts ahead. Meanwhile, Gulf countries, including Bahrain, Israel, Kuwait, Saudi Arabia, and the United Arab Emirates, reported missile attacks from Iran shortly after the ceasefire announcement, raising concerns about ongoing regional instability.
Revenue Allocation and Historical Context
Anonymous sources told the Associated Press that any revenue from the proposed tolls would be directed toward rebuilding Iran after recent conflicts, marking a significant shift from the longstanding free-travel arrangement. Trump emphasised the strategic benefits, stating, "We’re thinking of doing it as a joint venture. It’s a way of securing it — also securing it from lots of other people." This comes after Trump previously threatened a mass bombing campaign against Iran, which he claimed would "end a civilisation," adding to the contentious backdrop of the negotiations.
Uncertainties and Future Implications
The ceasefire deal's specifics, including whether it addresses Iran's nuclear activities, remain ambiguous. Trump asserted that Iran agreed to remove buried enriched uranium, but this has been contested by Iranian officials. As tensions simmer, with reports of flag-burning protests in Tehran and ongoing military alerts in neighbouring nations, the proposal for a joint toll system introduces a new layer of complexity to US-Iran relations and global trade dynamics through one of the world's busiest shipping lanes.
