Iran has formally proposed an “insurance mechanism” for ships transiting the Strait of Hormuz, insisting that the financial burden should fall on oil transporters rather than the Iranian public.

The United States has rejected any form of tolls or fees, with President Donald Trump warning that Tehran’s assurances of free passage must hold or negotiations will collapse.

Senior Iranian leader Major General Mohsen Rezaei, a former commander of the Islamic Revolutionary Guard Corps and now adviser to Supreme Leader Mojtaba Khamenei, outlined Tehran’s position in an interview with NewsNation.

He said Iran wants to guarantee both security and environmental protection in the Strait of Hormuz, a vital maritime corridor through which nearly one-fifth of global seaborne oil trade flows. Rezaei argued that an insurance framework would reduce risks for vessels encountering incidents, but stressed that the associated costs must be borne by oil transporters.

He explained that discussions with the United States have included tolls, fees, and service costs related to passage. Rezaei emphasised that Iran would not allow these expenses to be drawn from the pockets of its citizens, insisting that foreign oil carriers must contribute to the costs of maintaining safety and services in the strait.

The issue of levying fees has become a central point of contention in ongoing US–Iran talks. Tehran has maintained that ships using the strategic waterway should contribute to security and related services, while Washington has repeatedly rejected any proposal for tolls or maritime transit charges, citing the principle of freedom of navigation.

President Trump has strongly opposed Iran’s idea, calling it “unacceptable” if any deal included shipping fees. He warned that allowing such charges in Hormuz would set a precedent for other straits worldwide, which he would not permit. Trump’s remarks came during his meeting with NATO Secretary General Mark Rutte, where he described the imposition of fees as a “game changer.”

Trump also claimed that Tehran had given formal assurances to Washington that no transit charges would be imposed. Seeking to calm industry fears, he posted on Truth Social that Iran had informed the US there would be “NO TOLLS, NO INSURANCE COSTS, & NO OTHER CHARGES OF ANY KIND” on commercial shipping. He added a stern warning that if this assurance proved false, negotiations would end immediately.

The Strait of Hormuz has long been a flashpoint in global energy security. Recent developments have heightened tensions, with Iran’s newly created Persian Gulf Strait Authority introducing mandatory insurance requirements for vessels, free for 60 days but with fees likely to follow.

Analysts have described this as effectively amounting to a transit fee, raising concerns among shipowners and insurers about compliance, claims validity, and sanctions exposure.

War-risk premiums for Hormuz transits surged during recent conflicts, with insurance costs for a $150 million tanker reaching up to $7.5 million per voyage. The US government responded with a $40 billion reinsurance programme, while Lloyd’s and Chubb launched a consortium offering $400 million in coverage capacity.

Iran’s move to insert itself into the contractual risk chain has added a politically controlled layer to existing insurance arrangements, complicating the legal and commercial environment for global shipping.

The debate over insurance and fees underscores the strategic importance of Hormuz, where Iran seeks to assert control while the US insists on maintaining open, toll-free passage. The outcome of these negotiations will have significant implications for global energy markets and maritime security.

ANI