A former U.S. military lawyer warned that Iran’s plan to charge oil tankers for passing through the Strait of Hormuz is "illegal," raising fresh concerns as President Donald Trump considers a potential U.S. role in the proposal.
Former Judge Advocate General officer Margaret Donovan made the remarks Wednesday, reacting to Tehran's plan to charge oil tankers a cryptocurrency-based fee of $1 per barrel during a newly announced two-week ceasefire with the United States.
Iran earlier proposed charging tankers roughly $1 million to $2 million per vessel to transit the Strait of Hormuz, with fees varying based on cargo and political factors.
"It would be illegal for Iran. It would absolutely be illegal for us," Donovan told CNN's Anderson Cooper.
The proposal is raising eyebrows in Washington, particularly after Trump said he is considering a possible "joint venture" with Iran tied to collecting the tolls — a move critics say could entangle the U.S. in a questionable international arrangement.
Under the reported policy, tanker crews would be required to disclose cargo details — including the number of barrels on board — directly to Iranian authorities via email, according to Iranian energy spokesman Hamid Hosseini.
The Strait of Hormuz is one of the world's most vital energy corridors, handling about 20% of global oil consumption under normal conditions. But recent Iranian counterstrikes in the Persian Gulf have brought traffic through the narrow passage close to a halt, rattling global markets.
Donovan warned that Iran appears to be attempting to assert control over the strategic waterway through domestic legal maneuvers — an effort she suggested would normally be dismissed outright, if not for signals coming from the U.S.
"Iran is so sort of excited about this that their own Parliament has started to try to codify their right to the Strait of Hormuz and say that, ‘Actually, this is now our domestic law,' which would normally be laughable, except when you have the United States basically implying that it's endorsing this," she continued.
She stressed that Iran has no legitimate authority to impose such a toll and pointed to what she described as a troubling shift in the relationship between Washington and Tehran.
"Iran doesn't have any right" to impose the fee, Donovan said, noting the "interesting dynamic" as tensions evolve beyond earlier nuclear-focused negotiations.
"Now we're in a situation where Iran is actually leveraging the ability to illegally impose a toll and that appears to be something the United States is either going to agree to or even … participate in," she continued.
Energy markets have already reacted sharply to the instability, with oil prices surging earlier in the week amid fears of prolonged disruption. The ceasefire has provided some temporary relief.
Brent crude, the global benchmark, slipped to just below $100 per barrel Thursday morning after climbing above $110 earlier in the week.
U.S. benchmark West Texas Intermediate crude was trading at about $101.91.
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
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