US oil executives have called on President Donald Trump to rule out Iran's plans to collect tolls from vessels transiting the Strait of Hormuz in any peace deal they agree upon, the Financial Times reported.
Such a toll would set a dangerous precedent, potentially encouraging other countries, such as China, to implement a similar charge, the American Petroleum Institute, the largest US lobby for the industry, told the newspaper. They argued it would also strengthen Iran's government while hurting the oil industry.
Iran's effective closure of the Strait of Hormuz, by threatening to attack any ships that attempt to cross, has choked off about 20% of the world's oil and liquified gas supplies, driving up prices for energy as well as pushing food prices higher.
While Tehran is reported to have let some ships evade the blockade in exchange for fees heard at around $2 million, the FT report said it has also signaled its intention to impose a toll indefinitely even if the war ends.
While Trump has demanded Iran reopen the strait as part of their fragile two-week ceasefire that ends on Tuesday, traffic remains minimal with shippers reluctant to make the crossing amid high tensions.
The FT said US oil bosses were due to speak to Trump about the Strait's reopening on Thursday afternoon and to discuss the potential for increasing oil output.
"We can't let the Mullahs control with tolls the Strait of Hormuz. We can't let the [Islamic Revolutionary Guard Corps] control the Strait of Hormuz. We have to open that up," said Scott Sheffield, a senior voice in the US oil industry.
"It might require assembling a joint force with Europe, Asian and other Persian Gulf countries to open up the strait, Sheffield said. He said this crisis must be brought to an end to prevent global economic damage, even if that meant putting troops on the ground in Iran.
Sheffield had lived in Iran prior to the 1979 revolution, FT reported.
The article noted that Trump himself last week said the US could partake in a tolling of ships along with Iran, with "big money" to be made before later backpedalling and posting online that Iran "better not" be charging ships for passage.
The article quoted a White House spokeswoman who said: "As the president stated, the Strait of Hormuz is international water, and we are not going to let Iran toll the strait."
The head of the Abu Dhabi National Oil Company said that Iran had no business unilaterally imposing a charge.
"The Strait of Hormuz has never been Iran's to close or restrict," said Sultan al-Jaber, head of the Abu Dhabi National Oil, in a social media post.
"Any attempt to do so is not a regional issue; it is the disruption of a global economic lifeline and a direct threat to the energy, food and health security of every nation. Setting such a precedent is illegal, dangerous and unacceptable."
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