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Iran creates agency for Strait of Hormuz tolls as it reviews US plan to end war

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by Max Rego - 05/07/26 2:01 PM ET

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by Max Rego - 05/07/26 2:01 PM ET

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The Iranian government this week launched an agency to administer tolls on ships transiting the Strait of Hormuz, as officials in Tehran consider a proposal from the Trump administration to end hostilities.

The new agency, called the Persian Gulf Strait Authority, will approve ship transits and collect tolls in the key waterway, according to shipping journal Lloyd’s List.

Iran’s Islamic Revolutionary Guard Corps Navy has cracked down on shipping through the passageway since the U.S. and Israel launched the war on Feb. 28. The Iranian military has threatened vessels from non-allied countries and laid mines in the strait throughout the past two-plus months.

Also this week, the Trump administration submitted a memorandum to Iranian officials on ending the conflict. Multiple outlets reported Wednesday that under that proposal, the Islamic Republic would commit to a moratorium on nuclear enrichment.

In exchange, the administration would lift sanctions on Tehran and release billions in frozen Iranian funds. The two sides would also lift restrictions on transit in the strait, as the U.S. Navy has blockaded Iranian ports since April 13.

Esmaeil Baghaei, the spokesperson for the Iranian Ministry of Foreign Affairs, told the Iranian Students’ News Agency that Iranian officials are reviewing the proposal, according to Al Jazeera.

Tahir Andrabi, a spokesperson for the Pakistani Foreign Ministry, told reporters Thursday that “we remain positive, we remain optimistic and we hope that a settlement will be sooner rather than later.” Pakistani Prime Minister Shehbaz Sharif and his army chief, Asim Munir, have mediated negotiations between the two sides.

The Pakistani Ministry of Foreign Affairs also announced that Foreign Minister Ishaq Dar and Abbas Araghchi, his Iranian counterpart, spoke via phone on Thursday.

“The two exchanged views on recent regional developments and ongoing diplomatic efforts aimed at promoting peace and stability,” the ministry noted.

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