The International Maritime Organization (IMO) has formally rejected a proposal by US President Donald Trump to impose transit fees on vessels passing through the Strait of Hormuz, calling the demand for "protection money" incompatible with international maritime law.
The UN agency's stance directly contradicts the White House's assertion that the tolls are necessary to fund security operations in the waterway.
The rejection comes amid heightened tensions after Iran attacked multiple commercial ships transiting the strait over the past week, raising fears of broader disruption to global energy supplies.
The Strait of Hormuz remains a critical artery for global trade, with roughly a fifth of the world's oil consumption passing through the narrow waterway daily.
Any attempt to monetize transit rights or impose unilateral fees risks escalating geopolitical friction and disrupting established shipping routes.
Market participants are closely monitoring the diplomatic standoff for signs of further escalation.