MANAMA, July 13 — A proposal from former President Donald Trump to impose a 20% toll on all cargo vessels transiting the Strait of Hormuz is drawing fresh scrutiny from Gulf states and China, as the 2024 campaign platform pledge continues to reverberate across global shipping and energy markets. The plan, announced on April 22, 2025, would apply a 20% levy on every vessel passing through the strategic waterway, which connects the Persian Gulf to the Gulf of Oman.
The Strait of Hormuz is 21 miles wide at its narrowest point, and in 2023, an estimated 17,000 vessels transited the chokepoint, according to the U.S. Energy Information Administration. About 20% of the world’s oil supply — roughly 17 million barrels per day in 2023 — moves through the strait.
Trump also called for restarting a naval blockade of Iran, similar to the 2019-2020 campaign that targeted Iranian oil exports. The proposal is part of his 2024 presidential campaign platform, aiming to pressure Iran over its nuclear program and regional activities. The toll proposal could raise shipping costs by an estimated $10 billion annually, based on 2023 traffic levels.
Each vessel would pay an average toll of $600,000 at current rates. No legislation has been introduced in Congress as of April 2025.
Strategic waterway, high stakes
The Strait is bordered by Iran to the north and the United Arab Emirates and Oman to the south. In 2019, the U.S. Navy’s Fifth Fleet, based in Bahrain, conducted patrols in the region after attacks on tankers. That deployment was part of a broader effort to secure freedom of navigation amid rising tensions with Iran.
The history of U.S.-Iran tensions over the strait is long. The 2015 Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), was signed on July 14, 2015, and the U.S. withdrew on May 8, 2018.
Under maximum pressure sanctions, Iran’s oil exports fell from 2.5 million barrels per day in 2018 to about 400,000 barrels per day in 2020. China, which imports 1.5 million barrels per day from Iran as of 2024, has drawn criticism from the plan. Gulf states have also expressed concern over the potential disruption to global oil flows.
What it means for communities across the region
For families across Asia, the ripple effects of any disruption to the Strait of Hormuz could be significant. The waterway is a critical artery for energy supplies that power homes, businesses, and transportation networks from Tokyo to Manila. Higher shipping costs would likely translate to increased prices for goods and fuel, hitting household budgets.
Closer to home, the Philippines and other Southeast Asian nations rely heavily on imported oil that passes through the strait. Any sustained disruption or cost increase would affect not just fuel prices but the broader cost of living for millions.
The proposal remains a campaign pledge, with no legislative action taken. But as the 2024 election approaches, the debate over how to handle Iran and secure global energy routes is far from settled.
