The American Petroleum Institute has taken a firm stance against creating tolls or transit fees for ships passing through the Strait of Hormuz, API Chief Executive Mike Sommers said in an interview on Tuesday. The comments come after reports that Oman submitted a plan, supported by Gulf states, that would allow Iran to collect voluntary fees from vessels using the waterway.
Sommers cautioned that the trade group is unlikely to back "any kind of new tolling authority, particularly one that’s backed up by the threat of more bombing in the Strait of Hormuz," reflecting concerns about linking maritime charges to coercive force or military escalation.
The report of the Gulf-backed proposal specifies that Tehran would be permitted to collect voluntary payments from ships transiting the strait. That proposal has drawn attention because Iran has exerted strong control over the Strait of Hormuz since the United States and Israel began bombing the country in February, a dynamic that has contributed to sharp upward pressure on oil prices.
Market implications and transit security
Sommers said restoring normal levels of vessel traffic through the strait is essential for returning global oil markets to more typical conditions. However, he emphasized that Iran should not be allowed to exercise de facto control over the waterway, indicating concern that arrangements which grant Tehran influence over transit decisions or revenue could hinder market stability.
The API chief noted that the U.S. and other major oil-consuming nations have been withdrawing crude and fuel from inventories at record rates, a factor that has accompanied recent price volatility. That drawdown in supplies has heightened sensitivity to disruptions in key chokepoints such as the Strait of Hormuz.
Strategic Petroleum Reserve recommendations
Beyond maritime policy, Sommers urged Congress to consider targeted investments in the U.S. Strategic Petroleum Reserve. He highlighted that SPR caverns are designed for rapid drawdowns but can be difficult to refill and to maintain, suggesting a structural limitation that could affect preparedness for prolonged supply shocks.
As one possible response, Sommers recommended Congress look at opening additional SPR sites on the U.S. West Coast. He said this was an option that President Donald Trump’s administration had considered prior to the start of the Iran war, framing it as an available policy lever to improve domestic resilience.
Context and next steps
The API’s public opposition to tolling authority for the Strait of Hormuz underscores industry resistance to measures that could institutionalize payments to a party exercising leverage over a critical shipping lane. At the same time, the group is pressing U.S. policymakers to strengthen reserve capacity to buffer markets while maritime security and transit arrangements remain contested.