Oil giants protest to the White House: If Iran can charge fees, then Singapore and Turkey can too.

The U.S. oil industry is engaged in intensive lobbying with the Trump administration regarding transit fees through the Strait of Hormuz, warning that such arrangements would undermine the global order of free navigation and trigger uncontrollable chain reactions.

According to CCTV News, an anonymous regional official revealed that a two-week ceasefire plan includes allowing Iran and Oman to charge transit fees for vessels passing through the Strait of Hormuz. According to media reports, executives from multiple U.S. oil companies have contacted the White House, Secretary of State Marco Rubio, and Vice President J.D. Vance separately to voice their opposition.

Industry representatives also held a meeting with senior State Department officials on Wednesday morning to formally raise their concerns. White House Press Secretary Karoline Leavitt stated Wednesday afternoon that Iran had submitted a "more reasonable" updated proposal, and the president's current top priority is to reopen the Strait of Hormuz "without any form of restrictions."

The industry’s greatest concern is the precedent effect: If the fee arrangement for the Strait of Hormuz is established, countries controlling other key waterways such as Singapore (Malacca Strait), Turkey (Bosphorus) and others may follow suit, having far-reaching impacts on international trade order. Industry representatives have also cited international treaties, sanctions regulations, and potential cost burdens as further grounds for opposition.

Industry Lobbying: From the White House to the State Department

Citing an industry advisor who requested anonymity, oil company executives are using all available channels to express their opposition to the government. Asked whether executives are contacting the White House to protest, the advisor confirmed and said:

"We never had to do this before—we thought we had won this war. If you can find any channel to reach the government, you’ll ask: What are you guys thinking?"

The advisor said White House responses were "not cold rejections," but more like "OK, we’ve taken note."

Another participant in the State Department meeting disclosed that industry representatives are also quietly raising concerns directly with Trump, but in especially cautious terms. "The president is extremely sensitive about the outcome of this war, and pressuring him now is considered a risky move," the person said. "Though dialogue is tactful, the White House is still listening to the industry's voice."

Three Core Concerns: Costs, Precedent, and Legal Risks

Industry representatives raised three main arguments when communicating with government officials.

Cost aspect: Participants said discussed transit fee plans could significantly increase the comprehensive cost per shipment—including the transit fee itself and higher insurance premiums. There are rumors of a $2.5 million fee estimate, though no official figure has been confirmed. Industry representatives stress that regardless of the final number, the cost will be passed on to end consumers.

Precedent aspect: Industry representatives warn that a fee arrangement for the Strait of Hormuz could set an example for other countries to follow. Jason Bennett, an energy and international law attorney at Baker Botts, said: "Hormuz is an open international waterway; so far, no one has recognized any legal control over it. I don’t think anyone will accept this." He further predicted "strong backlash not only from the oil industry."

Legal risk aspect: Industry representatives believe paying such fees could expose companies to accusations of violating Iran sanctions, placing firms into a dilemma.

White House Stance: Priority to Reopen, Proposal Still Under Discussion

Trump stated Tuesday that the U.S. is advancing negotiations with Iran for a "long-term peace" deal, and considers the Iranian ten-point proposal as a "workable basis for negotiation." According to Xinhua News Agency, President Trump said in an interview with ABC on the 8th that the U.S. may seek to establish a "joint venture mechanism" with Iran to "operate" the Strait of Hormuz together. The U.S. wants to share in the transit fee revenue.

White House Press Secretary Leavitt confirmed Wednesday that the "joint venture" concept is "an idea the president proposed" and stated "it will continue to be discussed over the next two weeks." But she emphasized, the president’s current top priority is to "reopen the Strait of Hormuz without any restrictions—whether transit fees or others," and reiterated Iran’s cessation of uranium enrichment as his "unchanged red line."

Leavitt also said Iran has submitted a "more reasonable, more streamlined new proposal," but did not specify the changes. Vice President Vance has departed for Islamabad to participate in related negotiations. Neither his office nor the State Department immediately responded to requests for comment.

Strait Situation: Transit Nearly at a Standstill

Even though the ceasefire agreement was announced Tuesday night, the transit situation in the Strait of Hormuz has not visibly improved. Matt Smith, a Kpler analyst tracking commodities and vessels, said Iran again closed the strait after Israel attacked its ally Lebanon on Wednesday.

According to Politico, citing a Washington-based diplomat, at least "seven or more vessels" flying Malaysia’s flag are reportedly allowed to transit without being charged fees. Several Washington diplomats expressed concern over the prospect of different vessels being treated differently, believing this would bring high uncertainty to the trade order. The Malaysian Embassy did not respond to a request for comment.

Some Washington diplomats are also expressing their concerns to the White House through their respective channels, though they admit the White House previously showed limited interest in their views. An Asian country diplomat said, if such precedent is set, other countries may assert similar claims for the waterways they control in the future:

"Will the next one be transit fees for the Arctic route? My judgment is that other countries worldwide, especially strait-users, may all protest in some form."

Arthur Leichthammer, a researcher at Berlin's Jacques Delors Center, said accepting such a fee arrangement would be "an extremely costly concession both politically and economically." Most shipping companies clearly state they will not accept transit fee arrangements, saying it is "utterly unsustainable in the long term."

According to Xinhua News Agency and The Wall Street Journal citing S&P Global Market Intelligence data, only four vessels were permitted to transit the Strait of Hormuz on the eighth day after the ceasefire announcement.

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