Iran’s Hormuz Toll Scheme Draws Senate Sanctions Push
Benzinga reported Friday that Sen. Tom Cotton (R-Ark.) is pressing Treasury Secretary Scott Bessent to impose immediate Strait of Hormuz sanctions on Iran’s newly created shipping toll body and any party supporting it.
Cotton’s Letter Targets the PGSA
In a letter to Bessent first obtained by the Washington Free Beacon, Cotton demanded penalties against the Persian Gulf Strait Authority, known as the PGSA, along with its leadership and any foreign entity that pays into or processes payments for the toll system.
Cotton argued that recognizing the authority directly undermines freedom of navigation principles. He warned Benzinga reported that revenue flowing to the body funds a designated terrorist organization, writing that every dollar collected serves that purpose.
Cotton is described as the first U.S. lawmaker to propose legislation aimed specifically at the PGSA. The Treasury Department had not responded to requests for comment as of publication.
The PGSA Goes Public
The pressure campaign intensified after the PGSA launched an official social media presence on Monday. The authority declared that vessels passing through the strait without authorization are acting unlawfully and confirmed it had formally begun operations.
The move marked a significant escalation. Iran had previously signaled its intent to charge tolls on commercial shipping transiting the waterway but had not yet established a functioning administrative apparatus.
Background on the Hormuz Dispute
The Strait of Hormuz is one of the world’s most critical oil chokepoints. Roughly 20% of global petroleum supply moves through the narrow passage between Iran and Oman each year, making any disruption to shipping a potential market-moving event.
Iran has periodically threatened to close or restrict the strait during periods of geopolitical tension, particularly when under pressure from U.S. sanctions over its nuclear program. The latest toll proposal represents a different tactic, monetizing access rather than threatening outright closure.
President Donald Trump has publicly rejected the toll framework, describing the strait as an international waterway. His administration has consistently opposed any Iranian claim of jurisdiction over transit rights there, even as nuclear negotiations have continued in parallel.
Oman, which reportedly assisted in establishing the toll mechanism, occupies an unusual position. The Gulf state is a longstanding U.S. security partner but has historically maintained diplomatic channels with Tehran that Washington has found useful for back-channel communication.
Cotton’s push to sanction Oman-linked entities would test that relationship directly and force Bessent to weigh allied relations against the administration’s stated opposition to the PGSA.
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