Iran is demanding that the United States formally recognize that Iran controls the Strait of Hormuz—a narrow waterway in the Middle East—and allow it to charge ships a fee to pass through. Reuters reported on July 1, 2026, citing Iranian government officials, that these demands are being made during an active conflict between the two countries. The strait is critical: roughly 20 percent of the world's oil and natural gas flows through it. If Iran could charge fees and control who passes through, it would be like collecting tolls on a major highway—except this highway carries fuel that powers the global economy.

These demands emerged three months into the conflict that began when President Trump denied, in late May 2026, that he had made any deal with Iran. Iran's government had suggested the strait could reopen soon if certain conditions were met. When the U.S. rejected those conditions, American military strikes followed.

How Iran Is Building Its Case

Iran is not simply using force to get what it wants. It is also building a legal and diplomatic case. On May 28, 2026, Iran released a formal document from its Foreign Ministry mission in Geneva titled "The Strait of Hormuz—Legal Aspects of the New Arrangements in Light of Aggression and Fundamental Change of Circumstances." In this document, Iran argued that international agreements about the strait were made under different circumstances than exist today, and therefore those agreements should be renegotiated. International law does allow countries to renegotiate treaties in extreme cases, but only very rarely.

Iran supported this legal argument with coordinated messaging from its government. Messages posted on the official website of Iran's supreme leader framed the situation as "a new chapter for the Persian Gulf and the Strait of Hormuz." Iran's government also released a document outlining its "Program and Strategies for Managing the Persian Gulf and the Strait of Hormuz." This coordinated messaging—moving from broad declarations to legal arguments to diplomatic statements—shows this is an organized campaign, not a spontaneous demand.

At the United Nations in May, Iran's ambassador stated that "the only viable solution in the Strait of Hormuz is a permanent end to the war, the lifting of the maritime blockade, and the restoration of"—the statement as published stops here—signaling Iran is using every international forum available to press its position.

Who Is Driving This

The most prominent figure behind this push is Ayatollah Seyyed Mojtaba Khamenei, the son of Iran's supreme leader. He has become increasingly visible in Iran's government. In March 2026, he declared that "the lever of blocking the Strait of Hormuz must definitely continue to be used." He has also said that new rules for the strait "will bring comfort and progress for the benefit of all the nations"—essentially framing Iran's control as something that would help everyone.

This is not just talk. As of July 4, 2026, researchers at the Institute for the Study of War reported that Iran is already forcing commercial ships to follow routing rules that Iran created on its own. These are not recognized by international maritime law, which requires that such routing rules be approved by the International Maritime Organization.

On July 5, Iran's ambassador to China promised that ships from "friendly countries" would get special treatment passing through the strait, according to Al Jazeera. This creates two categories: allies of Iran, who get preferential treatment, and everyone else. It is a way to reward countries that support Iran and penalize those that do not.

What International Law Says

Under current international law, Iran's demand to charge fees is not legal. International maritime law says that ships have the right to pass through straits freely, and coastal countries cannot charge them fees. Iran's response is the argument in its Geneva document: that because of the conflict, the old rules no longer apply.

Here is the key distinction: whether or not other countries formally agree with Iran's claim is different from whether ships actually comply with Iran's demands. Ships might avoid the strait, follow Iran's routing rules, or pay the fees Iran demands—even if no one officially admits Iran has the right to do this. That gap between what is legal and what actually happens is where Iran is working. Iran has said publicly that the strait is still open and ships are still passing through, and that is technically true. But ships moving through under Iran's rules, at risk of being stopped if they do not comply, is not the same as ships moving freely under international law. That distinction matters for everything that comes next.