The Treasury Department on Friday issued a stark warning to U.S. shipping companies: paying tolls to Iran for passage through the Strait of Hormuz could lead to sanctions. The Office of Foreign Assets Control (OFAC) released an advisory confirming that Washington is aware of Tehran's demands for fees to guarantee safe transit through the vital waterway.
OFAC's advisory stressed that U.S. persons and foreign entities owned or controlled by Americans are generally barred under U.S. sanctions from engaging in transactions with the Iranian government, including payments for services, unless explicitly exempted or authorized. The agency did not disclose whether any companies have made indirect payments, though reports indicate some vessels have paid up to $2 million in tolls since the U.S.-Israeli conflict with Iran began on February 28.
The toll system was announced earlier this month by the Iranian Oil, Gas and Petrochemical Products Exporters' Union, which set a fee of $1 per barrel for tankers. Ships must email Iranian authorities with cargo details before being given the option to pay in bitcoin. President Trump quickly condemned the plan, telling Iran to “better stop now!” and initially floated the idea of a U.S.-Iran joint venture to manage the tolls.
Secretary of State Marco Rubio labeled Iran's tolling setup as “illegal” and “dangerous for the world” in March. The Trump administration has rejected Tehran's latest peace proposal, which offered to reopen the Strait of Hormuz in exchange for lifting the U.S. naval blockade on Iranian ports and vessels. The administration continues to demand further concessions on Iran's nuclear program, which Tehran insists is peaceful. Rubio dismissed Iran's proposal without nuclear concessions, signaling a hardening stance.
The Strait of Hormuz closure has sent oil prices soaring, with the national average for a gallon of gas hitting $4.39 on Friday, nearly a cent higher than Thursday, according to AAA. Jet fuel costs have also skyrocketed, forcing airlines to slash flights. Trump told Newsmax's Greta Van Susteren on Friday that he is not satisfied with the current ceasefire, stating he wants “to win by a bigger margin.”
The administration declared the Iran war “terminated” for War Powers Resolution purposes, as Friday marked the 60-day deadline under the 1973 War Powers Act. Trump formally notified Congress of an “imminent threat” on March 2, triggering the 60-day clock. The law allows a 30-day extension for safe withdrawal of U.S. forces, but the administration has not indicated any plans for such a request.
