• President Trump says China’s Xi Jinping has signaled opposition to any Iranian toll on ships passing through the Strait of Hormuz.
  • The remark escalates rhetoric around the critical oil choke point, with potential implications for global energy markets.
  • Iran’s internal debate over toll revenue highlights tensions between economic ambition and diplomatic risk.

Trump Raises the Stakes Over Strait of Hormuz

President Donald Trump said in a Fox interview that Chinese President Xi Jinping told him Iran should not be allowed to charge tolls for ships transiting the Strait of Hormuz. “He said he doesn’t like it,” Trump said, referring to Xi’s stance on the matter. The comments underscore ongoing U.S.–Iran tensions over the strategic waterway, through which about 20% of the world’s oil passes.

Trump’s assertion adds a new dimension to the simmering dispute, suggesting Beijing is aligned with Washington in opposing any Iranian attempt to monetize the passage. “China doesn’t want to see that happen. They need the oil as much as anyone,” Trump added. Calls to Iran’s mission to the UN for comment were not immediately returned.

Iran’s Toll Plan Faces Internal Pushback

Iran has reportedly debated imposing a transit fee on vessels moving through the Strait for years, seeing it as a way to leverage its geographic position and generate revenue amid sanctions. But according to people familiar with the matter, the proposal has drawn opposition within Iran’s leadership, with some officials warning it could provoke a military response and disrupt the country’s own exports.

“The plan is not dead, but it’s on hold for now,” said one person with knowledge of internal discussions. “There’s a recognition that the costs could outweigh the benefits.” Iran’s economy, already strained by U.S. sanctions, would be vulnerable to any escalation that risks shipping disruptions.

Market Watchers on Alert

The Strait of Hormuz is the world’s most critical energy chokepoint, and any threat to its free navigation has historically sent oil prices higher. Brent crude traded near $72 a barrel on Friday, little changed on the news, but analysts said the risk premium embedded in prices could rise if there are concrete signs of toll implementation.

“This is a live geopolitical risk that could meaningfully impact supply,” said a London-based oil analyst. “The involvement of China as a voice against tolls adds a diplomatic layer that might actually reduce the probability of Iran going through with it.” Shipping insurance premiums for vessels transiting the Gulf have remained stable so far, but could spike on any escalation.

Diplomatic Maneuvering

Trump’s disclosure of Xi’s views suggests the two leaders discussed Hormuz during recent talks. The U.S. has long pressed China to use its influence with Iran to keep the Strait open, and Trump’s latest comments may be aimed at cementing that position. Meanwhile, Iran’s leadership appears to be weighing its options carefully, balancing populist rhetoric against the practical perils of confrontation.

Correction: An earlier version of this article misstated the day of Trump’s interview. It was Thursday.