US Warns Shipping Firms of Potential Sanctions Over Payment of Iranian Toll Fees in Strait of Hormuz

United States Warns Shipping Companies of Sanctions for Making Payments to Iran

The United States has issued a warning to shipping companies that they could face sanctions for making payments to Iran to safely pass through the Strait of Hormuz. The alert, posted by the U.S. Office of Foreign Assets Control (OFAC) on Friday, adds another layer of pressure in the standoff between the U.S. and Iran over control of the strait.

The Strait of Hormuz is a critical waterway that connects the Persian Gulf to the Gulf of Oman, and it is a vital trade route for oil and natural gas. About a fifth of the world's trade in oil and natural gas typically passes through the strait in peacetime. However, Iran effectively closed the strait to normal traffic by attacking and threatening to attack ships after the U.S. and Israel launched a war on February 28. Iran later began offering some ships safe passage by detouring them through alternate routes closer to its shoreline, charging fees at times for the service.

The U.S. sanctions warning targets the "tollbooth" effort by Iran, which involves charging fees for safe passage. The payment demands could include transfers in cash, digital assets, offsets, informal swaps, or other in-kind payments, including charitable donations and payments at Iranian embassies. OFAC has warned that making these payments to or soliciting guarantees from the Iranian regime for safe passage poses sanctions risks, regardless of the payment method.

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The U.S. responded to Iran's closure of the strait with a naval blockade on April 13, preventing any Iranian tankers from leaving and depriving Iran of oil revenue it needs to shore up its ailing economy. Since the blockade began, 45 commercial ships have been told to turn around by the U.S. Central Command.

The warning came as U.S. President Donald Trump rejected Iran's latest proposal to end the war between the countries. Trump expressed frustration with the Iranian leadership, stating that "it's a very disjointed leadership. They all want to make a deal, but they're all messed up."

The standoff between the U.S. and Iran is increasingly putting pressure on the global economy, driving up prices and leading to shortages of fuel and other products tied to the oil industry. Negotiations continued by phone after Trump called off his envoys' trip to Pakistan last week. Trump floated a new plan to reopen the critical passageway used by America's Gulf allies to export their oil and gas.

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Iranian Foreign Minister Abbas Araghchi has briefed many of his regional counterparts on the country's initiatives to end the war, and he held talks with European Union foreign policy chief Kaja Kallas on Friday. Chinese Ambassador to the United Nations Fu Cong stressed the need to maintain the ceasefire and bring together the sides to resume good faith negotiations.